Federal Budget 2023/24 Highlights & ATO's Tax Time Focus

The 2023/24 Federal Budget, revealed by Treasurer Jim Chalmers on 9 May 2023, introduces significant measures for economic growth. Key points include:

• Superannuation Changes: Employers must pay superannuation alongside wages starting 1 July 2026.
• Small Business Incentives: Businesses under $50 million turnover get a 20% deduction for energy-efficient expenses.
• Capital Works Deduction: Depreciation rate for new build-to-rent projects rises from 2.5% to 4% per year.
• Instant Asset Write-Off: Small businesses ($10 million turnover) can instantly write off assets up to $20,000 until 30 June 2024.
• Depreciation Relief: Temporary full expensing extended to 30 June 2023; opt-out limit suspended until 30 June 2024.
• Superannuation & Tax Changes: Adjustments to non-arm’s length income provisions, tax concessions for >$3 million super balance, and Medicare levy exemptions.

ATO's Tax Time Focus:

The ATO concentrates on three areas:

• Rental Property Deductions
• Work-Related Expenses
• Capital Gains Tax

'Side Hustles' and ATO:

The ATO addresses modern 'side hustles' and emphasizes proper registration and tax compliance, offering guidance for new businesses.

Ride Sourcing Data-Matching:

The ATO gathers ride sourcing data to enhance compliance monitoring and education campaigns.

Stay informed, report accurately, and ensure a successful financial year ahead.

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