Upcoming & Recent Changes

Temporary full expensing (Up to $20,000)

The Australian Tax Office has extended temporary full expenses to 30 June 2024. Businesses (Under $10m turnover) can fully deduct the full cost of assets purchased and installed prior to 30 June 2024

Super Guarantee

The mandatory Superannuation % has increased to 11.0% from 1 July 2023 (10.5% previously)

Super Guarantee (continued)

From 1 July 2022 employers are required to pay eligible employees super guarantee regardless of earnings. Previously an employer did not have to pay super guarantee to employees earning less than $450 a month.

Payments to Superannuation

From 1 July 2023 Concessional contributions are capped at $27,500

From 1 July 2023 Non-Concessional contributions are capped at $110,000

Accumulation of Superannuation

The Transfer Balance Cap has increased to $1.9 Million from 1 July 2023. The Transfer Balance Cap is the maximum amount that can be transferred to retirement phase. Please note a lower limit of $1.6 Million applies for tax-free status of pension accounts. Excess value over the $1.6 Million is taxed at 15%.

Payments from Superannuation (SMSFs)

The Australian Tax Office has ended the temporary reduced rate of 50% minimum withdrawals for superannuation pensions.

Please contact our office to ensure minimum pension requirements are met each year.

Downsizer Contributions

From 1 January 2023 you may be able to contribute up to $300,000 from the proceeds of your home. Minimum requirements include being aged over 55, owning your home for over 10 years and making the contributions within 90 days of settlement. Please contact our office for further information if this interests you.

Work from Home Expenses

From 1 July 2022 you will be required to maintain more records for your home office expenses. If you are working from home, please take time to note time spent working from home and document all costs used for work purposes such as telephone, internet, electricity, furniture & technology.

The shortcut method of 80 cents per hour has ended, however a fixed rate method is available at 67 cents per work hour.

Low and middle income tax offset (LMITO) has ended

If you earn under $126,000 you may receive a lower refund in the 2023 return compared to 2022. The Australian Tax Office has ended the temporary $1,500 LMITO.

Self Education

You can now claim full deduction for self education expenses related to your employment. Previously the first $250 was not deductible.