End of Financial Year
It is amazing how quickly another financial year has passed!
This year the budget has revealed a number of changes to taxation policy that will affect both businesses and individual taxpayers.
Please read on for a summary of some of the important changes this year, and as always, we are here to answer any of your accounting or taxation related questions.
Business
Instant Asset Write Off
The recent federal budget has decreased the threshold for Instant Asset Write-Off to $20,000 from the previous years unlimited temporary full expensing rule. What does this mean?
Any business with sales/turnover under $10 million can now only claim an immediate tax deduction of the total cost of any business asset if the cost is under $20,000 after GST. This includes tools, equipment, machinery and vehicles. To access the tax deduction, the asset must be first used or installed ready for use by 30 June 2023.
If you are unsure how this rule affects your business or if this could help reduce your profit and tax payable, then call our office and let us review your position and any potential tax benefits.
Individuals
Cryptocurrency
The ATO is increasing its focus on Cryptocurrency transactions this year and it is important to know your obligations when completing your tax return. We are here to help with the technical side of taxation on Cryptocurrency, however individuals must keep detailed records of their crypto transactions, including the date of the transaction, the amount of crypto exchanged, and the value of the crypto at the time of the transaction. The ATO can track crypto activity to taxpayers using data-matching technology, so it is important that induviduals with crypto investments make sure to correctly report their investment activity on their tax return.
Low and Middle Income Offset
The low and middle income offset is no longer available to taxpayers and this will mean many taxpayers may see their tax refunds for the 2023 financial year be reduced by between $675 and $1,500.
Super Contribution
In 2022-23, concessional superannuation contributions are capped at $27,500 for all ages. Such contributions include both:
- Employer contributions (Super guarantee).
- Personal contributions claimed as a tax deduction.
- Salary sacrifices from work.
Work-related deductions
The ATO is once again cracking down on individual tax deductions and this year its focus will include the following expense claims:
- Motor vehicle expenses
- Mobile phone & internet costs
- Deductions for Rental Property repairs and maintenance
- Deductions for working from home
- Work related travel expenses
To claim a tax deduction for any expenditure you must keep records of the expense and may need to provide supporting information to confirm it is related to your employment or investment income. To understand the above information and how it may affect your tax return, please talk to one of our accountants at your appointment.
EOY Checklist
End of Year Deadlines
The first quarter for the new financial year is always a busy time for our office and we would remind clients that there are several important deadlines;
| Due date | |
| Superannuation for the quarter ended 30 June 2023 | 28 July 2023 |
| STP Finalisation Lodgement | 14 July 2023 |
| Reportable Taxable Payments Summary | 28 August 2023 |
| June 2023 Business activity statements lodged electronically | 11 August 2023 |
| Return to Work SA (Workcover) | 15 September 2023 |
Extended Opening Hours
Our office will again be open for extended hours on Tuesday nights to offer appointments to individuals, from the 10 July 2023 to the end of September 2023. If you need an after-hours appointment, please call our office to arrange an appointment.
