5 July 2023
Removal of Low and Middle-Income Tax Offset (LMITO)
The government has removed the LMITO of a maximum of $1,500 which will cause reduced refunds for those taxpayers who would have been otherwise eligible for this offset.
Self- Education Expenses
Taxpayers were not entitled to claim the first $250 in relation to their self-education expenses. Starting from 1 July 2021 this threshold has been removed.
Working from expenses
This area has been impacted the most starting from the 2023 financial year. Under the fixed rate method, the hourly rate has been increased from 52 cents to 67 cents and more expenses are now included under this rate which were previously not covered.
The fixed rate of 67 cents now covers electricity, gas, internet, phone usage, computer consumables and stationery. You can’t claim a separate deduction for any of these expenses but you can claim depreciation of assets such as computer items, office furniture etc.
For the period of 1 July 2022 to 28 February 2023 a four-week diary representing no. of hours worked from home can be used to substantiate the claims.
From 1 March 2023, the ATO requires records of all the hours worked from home.
The actual cost method still allows you to claim items separately for the actual expenses you incur as a result of working from home.
You are required to keep receipts and records for all the expenses.
Super Guarantee
The Superannuation Guarantee rate has increased from 10.5% to 11% from 1 July 2023.
Changes to asset write-off provisions for businesses
Temporary Full Expensing which allowed businesses to write off eligible assets finished on 30 June 2023.
Small businesses technology investment boost
Small businesses with an aggregated annual turnover of under $50 million might be eligible to claim an extra 20% tax deduction on eligible expenses technology-related expenses such as computer items, software, internet costs, digital media and marketing including web design, e-commerce and cyber security related expenses.
You can only claim this boost for expenses incurred between 7:30 pm on 29 March 2022 and 30 June 2023 and are already allowed a deduction under taxation law.
Small business skills and training boost
Small businesses with an aggregated annual turnover of under $50 million might be eligible to claim an extra 20% tax deduction on eligible expenses for external training courses delivered to employees by registered training providers.
The expenditure must be:
for the provision of training to employees of your business, either in-person in Australia, or online
charged, directly or indirectly, by a registered external training provider that is not you or an associate of yours
already deductible for your business under taxation law
incurred within a specified period (between 7:30 pm AEDTor by legal time in the ACT on 29 March 2022 and 30 June 2024).