Low and middle income tax offset
The low and middle income tax offset (LMITO) ended on 30 June 2022. This could decrease your 2023 tax refund by up to $1,500 compared to the 2022 tax year.
Small business technology investment boost – (Up to 30 June 2023)
Small businesses (with an aggregated annual turnover of less than $50 million) can deduct an additional 20% of the expenditure incurred for the purposes of business digital operations or digitising its operations on business expenses and depreciating assets such as portable payment devices, cyber security systems or subscriptions to cloud based services.
An annual $100,000 cap on expenditure will apply to each qualifying income year. Businesses can continue to deduct expenditure over $100,000 under existing law. So maximum deduction is 20% x $100,000 = $20,000.
You can find more information regarding this on the ATO website, or contact us to discuss it further.
Small business skills and training boost – (Up to 30 June 2024)
Small businesses (with an aggregated annual turnover of less than $50 million) will be able to deduct an additional 20% of expenditure that is incurred for the provision of eligible external training courses to their employees by registered providers in Australia. Businesses may continue to deduct expenditure that is ineligible for the bonus deduction in accordance with the existing tax law.
There is no cap on the expenditure deductible.
You can find more information regarding this on the ATO website.
If you have any questions or want to request a meeting to discuss further please do not hesitate to contact us. Appointments can be by phone, video or in person.