The Federal budget for the 2023/24 financial year has recently been handed down in Parliament.
Below is the list of key tax measures and changes that are included in the budget.
- Small businesses will be able to claim a 20% bonus deduction on spending that supports electrification and more efficient use of energy. Assets/upgrades will need to be purchased and ready for use between 1 July 2023 to 30 June 2024. Eligible assets include electrifying heating and cooling systems, upgrading to more efficient fridges and induction cooktops, installing batteries and heat pumps. The maximum bonus tax deduction is set at $20,000 per business.
- Temporary full expensing will no longer be available from 1 July 2023. The new instant asset write-off for small business will be set at $20,000 per asset until 30 June 2024. Small business simplified depreciation rules will be available for assets that exceed this amount.
- The loss carry back tax offset will no longer be available from 1 July 2023 for eligible companies.
- There is a new lodgement penalty amnesty available for small business taxpayers that are lodging overdue forms between 1st of June 2023 to 31st December 2023. Failure to lodge penalties will be remitted for all overdue forms that were originally due between 1st December 2019 to 28th of February 2022.
- Employers will be required to pay superannuation guarantee for employees at the same time that they pay wages. This will replace the quarterly payment deadline. This will come into effect from 1 July 2026.
- The low- and middle-income tax offset will no longer be available during the 2023 income year. Taxpayers that previously received up to $1,500 in extra tax refunds will notice a reduction in their 2023 tax refund.
- The Medicare levy low-income thresholds will be increased for the 2023 income year (taxpayers will not be required to pay the levy until their income exceeds the threshold).
- Pensioners are now able to earn up to $11,800 per financial year before impacting on their pension.
For more details, please visit the budget website at https://budget.gov.au/index.htm