The Federal Budget 2023, orchestrated by Treasurer Jim Chalmers. With a spotlight on the small business sector, it’s clear this year’s strategy is less about sweeping tax cuts and more about precise, purposeful initiatives. Of particular note, the revival of the $20,000 instant asset write-off and a novel program to reward energy-efficient asset purchases.
The 2023-24 financial year doesn’t bring any alterations to personal tax rates, with no new information regarding the Morrison government’s Stage 3 tax cuts, currently on track for implementation on 1 July 2024. The cessation of the Low and Middle Income Tax Offset (LMITO), however, implies an indirect tax increase for countless Australians.
For those on the lower end of the income spectrum, some relief is in sight. The Medicare levy low-income threshold is seeing an uptick for singles, families, and couples.
Our small business community, those with an annual turnover of less than $10 million, will welcome the return of the $20,000 instant asset write-off, active from 1 July 2023 to 30 June 2024. Additionally, these SMEs are eligible for a 20% supplementary deduction on qualifying energy-efficient assets – think smart fridges, electric cooling systems, and sustainable batteries.
The 2023 budget may not be a game-changer for all taxpayers, but it does throw a lifeline to small businesses and low-income earners with targeted support. Staying informed is key – navigate these changes wisely to maximise your financial outcomes.
Source: https://www.hrblock.com.au/tax-academy/2023-federal-budget-tax-updates
