Federal Budget May 2023
The annual Federal Budget was handed down on the 9th of May 2023. Whilst there was lots of announcements, there was very little in the way of taxation measures affecting small and medium business or individual taxpayers.
Here’s a summary of the major items :
- As previously announced, the Low and Middle Income Tax Offset, worth up to $1,500 per year for an individual, will not be extended beyond 30th June 2023.
- Also as previously announced, superannuation balances over $3m will be subject to an additional 15% tax from 2025/26.
- The Small Business Energy Incentive will be available to business with turnover less than $50m. It allows an additional 20% tax deduction on spending that supports electrification and more efficient use of energy. This applies to assets installed and ready for use between 1st July 2023 and 30th June 2024. Up to $100,000 of total expenditure will be eligible for the incentive.
- Employers will be required to pay superannuation for their staff at the same time as they pay wages from 1st July 2026.
- The current Instant Asset Write-off for business who purchase depreciable assets was due to finish on the 30th June 2023. There will be a temporary extension up to 30th June 2024, but only for assets costing less than $20,000. For assets over the threshold, the normal depreciation rules will apply.
- Finally, as usual, lots of money to the ATO to carry out compliance activities.
As always, please remember that these are merely budget announcements at this stage. These measures have not been passed by parliament, they may be substantially changed before being passed, or may never be passed at all.