Welcome to our August monthly newsletter!

The Federal Budget for 2023 announced plenty of changes, however there is one area that has confused most taxpayers. The middle-income tax offset was not extended by the Government and was never actually announced or advertised by them either which has left many individuals puzzled by their reduced refunds for 2023. The offset would allow taxpayers (in the middle-income bracket) a reduction of up to $1,500 of their income tax liability. If you have noticed that your refund has reduced by around $1,500 or less when compared to last year and you are in the middle-income bracket, then the reason would most likely be due to this offset. Please contact our office should you require further information or are unsure if your tax refund/liability is correct.


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Monthly tax tip:

The Federal Budget for 2023 also announced the new Small Business Instant Asset Write-off which is now capped at $20,000 per eligible asset. This may affect business taxpayers that are going to be selling and replacing a business asset. For example, if a business has fully deducted a motor vehicle in a previous year and then decides to trade it in for an upgraded vehicle during this income year, there is going to be an unexpected tax liability. The trade (sale) of the vehicle would need to be included as taxable income and then the replacement vehicle could not be fully deducted if it is valued at over $20,000. If we assume that the old vehicle was sold/traded for $50,000 and the new vehicle is valued at $60,000, we will calculate the increase of taxable income below (this is just an estimate, every taxpayer will be different due to different tax rates and capital gains offsets available to them):

  • $50,000 taxable income (selling the old vehicle)
  • $5,000 – $10,000 depreciation expense for new vehicle (depending on purchase date and depreciation method)
  • Total of $40,000 – $45,000 increase in taxable income
  • Between $10,000 – $11,250 extra income tax liability if the business is operating as a company

This is something to be aware of and consider if selling and replacing a business asset that was previously fully deducted. If this is something that you are considering, then please contact our office to discuss the potential tax liability.

If you would like to schedule a consultation with us then please jump onto our website where you can see our availabilities and book a time that suits you.


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Important Dates!

21 August:

  • Lodge and pay July 2023 monthly business/instalment activity statement

25 August:

  • Lodge and pay quarter ending 30 June 2023 activity statement

28 August:

  • Lodge and pay quarter ending 30 June 2023 superannuation guarantee charge statement if the contributions were not paid on time*
  • Lodge TPAR (taxable payments annual report) for the year ending 30 June 2023 if you paid contractors*

* Superannuation guarantee charge is not tax deductible
* Required if your business provides the following services: building and construction, cleaning, road freight and courier, information technology, security and investigation


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