It's the time of year when you want to know where you stand on tax.
With tax planning for the next financial year well underway, let's take a moment to help you understand what the Government has planned with a recap of the recent budget.
The Government is temporarily increasing the instant asset write-off threshold to $20,000 for assets used or installed between 1 July, 2023 and 30 June, 2024. This is for businesses with an aggregated annual turnover of less than $10 million. These efforts are to assist with improved cash flow for small businesses.
The ATO is holding off on fines to small businesses with a turnover of $10 million or less that have not lodged tax returns between 1 December, 2019 and 28 February, 2022, if they take action and lodge their old tax returns before 31 December 2023.
A bonus 20% tax deduction (up to a total spend of $100,000) can be claimed on purchases that support energy efficiency, such as efficient heating and cooling appliances, batteries, fridges and freezers.
The ATO is also cracking down on outstanding BASs and GST debt.
Employers will have to pay super at payday from July 2026, rather than quarterly. Also, from 2025, future earnings on balances over $3 million will be taxed at 30%, a significant increase.
There are also changes to The Government's childcare subsidy from July 1. Families earning under $80,000 will have a 90% subsidy for their first child, up from 80%. For families earning over $80k, the subsidy lowers based on income.
Contact Tier Accounting to speak with a chartered accountant to see how we can help you with your tax planning.
Tier Accounting and Business Solutions is a Chartered Accounting firm servicing Bayside, Mornington Peninsula and greater Melbourne across accounting, bookkeeping, business partnering, cloud set up and support and marketing.
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