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Key Tax Planning strategies before 30 June 2023

As we come to the end of the financial year it is a good idea to have a think about those last-minute tax deductions to reduce your taxable income. If you are unsure, please ask us before taking any action to ensure the best tax outcome. Here are a few ideas to consider:

  1. Top up super to the $27,500 to receive that personal or business tax deduction without having to meet any work tests;

  2. Temporary full expensing allowing immediate write off and tax deduction of any business assets purchased. This ceases on 30 June 2023

    1. Small business will be able to access the instant asset write off for assets costing less than $20,000 if they are used or installed ready for use between 1 July 2023 and 30 June 2024;

  3. Prepaying expenses such as rent or interest;

  4. Deferring income into the next financial year by way of invoicing after 1 July;

  5. Reviewing aged debtors, considering write off as a bad debt to receive a deduction;

  6. Home office usage.

If you are in SMSF Pension mode

Please remember to make the minimum pension withdrawal before 30 June 2023

After 1 July 2022 Rate of Compulsory Super to Rise

The super guarantee, the proportion of wages that employers must contribute to their workers' retirement savings is legislated to increase half a per cent a year before reaching a final value of 12 per cent by 2025.

This means the superannuation guarantee rate will increase to 11 per cent from July 1, 2022 and rise by 0.5 per cent per year thereafter until it reaches 12 per cent by 2025.


Single Touch Payroll

Phase 2 is now in place.

From 1 July 2021, employers must report their closely held payees through STP. You can choose to report these payees each pay day, month or quarter. The quarterly reporting concessions for micro employers will only be available to micro employers who meet certain eligibility requirements which is now the need for exceptional circumstances to exist and can apply for this concession through the online deferral tool. Employers who have not started reporting through STP and do not have a deferral or exemption need to start reporting now. If you have any questions or want to request a meeting to discuss further please do not hesitate to contact us.


Fringe Benefits Tax (FBT) – Electric vehicles

You do not pay FBT if you provide private use of an electric car that meets all the following conditions:

  • the car is a zero or low emissions vehicle;

  • the first time the car is both held and used is on or after 1 July 2022;

  • the car is used by a current employee or their associates (such as family members);

  • luxury car tax (LCT) has never been payable on the importation or sale of the car.

Business Growth Fund Program | Business Queensland

The Business Growth Fund (BGF) targets high-growth businesses who can accelerate growth, drive Queensland's economy and employ more Queenslanders


Company tax rates

  • Trading entity - 25%

  • Investment entity earning passive income such as rentals or trust distributions - 30%

Individual tax rates

Resident tax rates 2022–23

Taxable income

Tax on this income

0 – $18,200

Nil

$18,201 – $45,000

19c for each $1 over $18,200

$45,001 – $120,000

$5,092 plus 32.5c for each $1 over $45,000

$120,001 – $180,000

$29,467 plus 37c for each $1 over $120,000

$180,001 and over

$51,667 plus 45c for each $1 over $180,000

The above rates do not include the Medicare levy of 2%.

The following are not yet Law

Small Business Technology Investment Boost

Subject to law, small businesses (with aggregated annual turnover of less than $50 million) will be able to deduct an additional 20 per cent 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.

This is only available on expenditure up to 30 June 2023.


Small Business Skills and Training Boost

Subject to law, 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.

This is available on expenditure up to 30 June 2024 (hopefully the law will have passed through parliament by then).

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.

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