2023/2024 Federal Budget
On the 9th of May Treasurer Jim Chambers handed down the 2023/2024 Federal Budget aimed at addressing challenging issues including higher interest rates, inflation and cost of living pressures. Following is a collection of some of the headline announcements that apply to Business.
Instant Asset Write-off Extension
Small businesses, with aggregated turnover of less than $10 million, will be able to immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use between 1 July 2023 and 30 June 2024. The$20,000 threshold will apply on a per asset basis. Assets valued at $20,000 or more can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year there after.
Small Business Energy Incentive
An additional 20% tax deduction will be given to small and medium businesses with an aggregated turnover of less than $50 million for the first $100,000 of expenditure in depreciating assets which support electrification and energy-efficient processes. Eligible expenditure will include investment in electrifying heating and cooling systems, upgrading to more efficient fridges and induction cooktops and installing batteries and heat pumps.
FBT Exemption for plug-in hybrid cars scrapped
The FBT exemption for eligible electric cars will no longer apply to plug-in hybrid cars from 1 April 2025.
Lodgement penalties amnesties
For small businesses with an aggregated turnover of less than $10 million, failure to lodge penalties will be remitted for lodgments taking place in the 7 month period from 1 June 2023to 31 December 2023 where the original lodgment was due between the period from 1 December 2019 to 28 February 2022. The aim of the incentive is to encourage re- engagement with the tax system with those that may not be fully engaged.
Superannuation contributions to be paid on a payday
From 1 July 2026, employers will be required to pay their employee’s superannuation at the same time as their salary and wages. The measure has largely come about due to unpaid superannuation contributions being a chronic issue in the system. To further strengthen the system, the ATO will receive additional resourcing to help it detect and act on unpaid superannuation payments.
Expansion of ATO Compliance activities
Significant further funding will be provided to the ATO to expand compliance programs targeting high-value or aged tax debts for certain taxpayers, superannuation guarantee compliance, GST compliance and financial crimes
