It is nearly tax time again.
In an ever-changing world there is always a new challenge ready for us. This year’s focus has been the floods, as it has been with everyone else.
We don’t want to see that again. We have been helping our business clients apply for grants.
This has been a long process with so many reporting requirements by the government. While the grants were helpful, in most cases it still wasn’t enough to be able to rebuild.
The Federal Government has made some changes to what taxpayers can claim.
The unlimited immediate write-off for assets has been abolished for businesses. The maximum amount that can be written off from July 1, 2023, is $20,000 net of GST.
The ATO is providing a small business lodgement penalty amnesty. This means that businesses can bring themselves up to date with their BAS and tax returns without receiving any penalties.
This is only for a short period from June 1 to December 31. It covers the period of original lodgement dates from December 1, 2019, to February 28, 2022.
There is good news for property investors. The current building write-off is 2.5 per cent a year. This will be increased to four per cent for houses built after May 9 this year.
The government is hoping this will encourage new builds to help ease the shortage of housing.
Unfortunately for property investors, the state government has reduced the land tax threshold and thousands of landlords will find their properties subject to land tax for the first time in 2024.
Millions of Australians have not had their employers, both past and present, pay their compulsory super.
To remove this problem, from July 1, 2026, employers will have to pay superannuation every time the employee gets paid.
This will become part of the compulsory Single Touch Payroll.
Home office expenses are being reviewed by the ATO. It believes employees working from home during the COVID-19 pandemic over-claimed the deduction.
The new home office rates have increased to 67 cents per hour. If you use the fixed rate, you can’t claim any other expenses, such as mobile phone, internet or stationery.
However, you can still use the actual cost method instead. You need to keep a diary of hours worked from home to substantiate any claim being made.
Motor car travel rates have increased to 78 cents per kilometre. Once again, you need to keep a diary.
Now is the time to prepare for the 2023 tax year. If you need to purchase anything for work, both businesses and individuals, purchase before June 30 to take advantage of the tax deduction.
Now is the last chance for business clients to purchase equipment or motor vehicles to be able to write-off in full.
Anything you purchase must be in your possession before June 30. Pre-paying the expense or on order does not qualify for a tax deduction.
For more information, please visit Osborne & Osborne at 6 Wallis St, Seymour, phone 5792 1400 or email mail@osbornes.com.au