While it might seem crazy that we’re smack-bang in the middle of the year, it’s also a little wild to think we’re entering the new financial year!
Treasurer Jim Chalmers handed the 2023-24 Federal Budget, which aimed to address the challenging issues many Australians are facing such as higher interest rates, inflation, and cost of living pressures amongst others—including those relevant to business owners.
So, if you haven’t caught up with the 2023-24 Federal Budget, we encourage you to grab a cuppa and settle in with us as we share the nitty-gritty.
Instant Asset Write-Off Extension
If your small business has an aggregated turnover of less than $10 million, you’ll be able to deduct the full cost of eligible assets that cost less than $20,000. Such assets must be first used or installed ready for use between 1 July 2023 and 30 June 2024 while the threshold of $20,000 will now apply on a per-asset basis.
Any assets valued at the threshold or more will continue to be placed into the small business simplified depreciation pool, depreciating at 15% in the first income year and 30% each year thereafter.
Small Business Energy Incentive
Small-to-medium businesses with an aggregated turnover of less than $50 million will receive an additional 20% tax deduction for the first $100,000 of expenditure in depreciating assets, which support electricity-generated and energy-efficient processes.
For example:
- Investment in electrifying heating and cooling systems
- Upgrading to more efficient fridges and induction cooktops
- Installing batteries and heat pumps
FBT exception scrapped
In case you missed it, the fringe benefits tax (FBT) exemption previously applied to eligible electric vehicles. However, this no longer applies to plug-in hybrid cars from 1 April 2025.
Lodgement penalty amnesties
Small businesses with an aggregated turnover of less than $10 million and fail to lodge penalties will be remitted for lodgements taking place in the seven-month period from 1 June 2023 to 31 December 2023. This aims to encourage re-engagement with the tax systems with those who may not already be or aren’t fully engaged.
Superannuation contributions
As of 1 July 2026, you’ll be required to pay your employees’ superannuation at the same time as their salary and wages. Due to unpaid contributions being an issue in the system, the ATO will receive additional resourcing to help strengthen it by detecting and acting upon unpaid superannuation payments.
So, did you manage to soak all of that in? If you’re feeling a little lost, there’s no need to worry—we’re always down for a chat! Book a consultation with your friendly bookkeepers here.