The Federal Budget was handed down on the 9 May 2023, outlining a number of changes that impact businesses, tax & superannuation.

Small Business Instant Asset Write-Off Returns

The instant asset write-off will return for the 2022-23 financial year (between 1 July 2023 to 30 June 2024). If you buy an asset to use for business purposes and it costs less than $20,000, you can immediately deduct the business portion of the cost in your tax return. This deduction is available for each asset that costs less than $20,000.

Quarterly Tax Instalments For GST & Income Tax Halved

Eligible small businesses will halve the increase in their quarterly tax instalments for GST and income tax in 2023‑24. These instalments will only increase by 6 per cent instead of 12 per cent to ease the financial burden on small businesses during these economic conditions.

Petroleum Resource Rent Tax Reforms

The Petroleum Resource Rent Tax is to be reformed to ensure a fairer return to the Australian community from Australia’s liquefied natural gas resources while providing certainty to industry and investors to support the domestic gas supply.

The PRRT is a 40% tax on the profits generated from the sale of marketable petroleum commodities above a specified rate. However, this is often reduced by the concessions for the expense of exploring and developing gas fields, which can be carried forward and deducted as tax credits against future liabilities.

Tax Return Amendment Period To Be Extended From 2 Years To 4 Years

Previously, tax returns could only be amended up to 2 years after they were lodged. This is to be increased to 4 years.

Lower Tax Concessions For $3 Million Or More Superannuation Balances

From 1 July 2025, earnings on balances exceeding $3 million will attract an increased concessional tax rate of 30 per cent. Earnings on balances below $3 million will continue to be taxed at the concessional rate of 15 per cent.

Superannuation Moves From Quarterly Payments To Payday

From 1 July 2026, employers will be required to pay their employees’ super at the same time they pay their wages. This will enable employees to track their entitlements to ensure they are paid on time and in full.

Paid Parental Leave Update

From 1 July this year, Parental Leave Pay and Dad and Partner Pay will combine into a single 20‑week payment. This is set to be increased to 26 weeks by 2026. The threshold for the income test for the family is $350,000 per annum.

Medicare Levy Low-Income Threshold Increased

The Government will increase the Medicare levy low-income thresholds for singles, families and seniors and pensioners from 1 July 2022. The increase in thresholds provides cost-of-living relief by taking account of recent CPI outcomes so that low-income individuals continue to be exempt from paying the Medicare levy.