Business & Employers
Instant Depreciation of Assets for Small Businesses
Companies with annual sales under $10 million can write off 100% of the acquisition price of qualifying depreciating assets of small businesses under $20,000 that are first put into service between 1 July 2023 and 30 June 2024.
This letter states that the temporary full expensing regulations, which allowed asset purchases between 6 October 2020 and 30 June 2023 to be entirely written off, will expire on that date.
Energy efficiency grants for all enterprises up to $20,000.
Deductions are limited to $20,000 and spending to $100,000.
The bonus is available to companies with annual revenue under $50 million.
The incentive is expected to cover a wide range of depreciating assets and upgrades to existing assets, including electrifying heating and cooling systems, upgrading to more efficient refrigerators and induction cooktops, and installing batteries and heat pumps, though details are not yet available.
Reducing Small Business Tax Payments
Adjustments to GST and PAYG instalments are often made using an uplift or adjustment to GDP.
For businesses of any size, the 6% increase rate will apply.
Businesses that, following the passage of the new law, will be able to pay their taxes over the course of the 2023-24 revenue year by instalments:
- A $10 million yearly cap on PAYG instalments
- A$50 million annual cap on GST instalments
“Payday” super – More frequent payments of employee superannuation
Employers must contribute to workers’ super starting July 1, 2026.
paycheck on the day workers receive super guarantee benefits.
A government consultation will inform the 2024–25 Federal Budget
Hybrid cars pay FBT, while electric cars don’t.
As previously reported, plug-in hybrid electric vehicles would lose the fringe benefits tax (FBT) exemption on April 1, 2025.
The FBT exemption applies to arrangements made between 1 July 2022 and 31 March 2025 as long as the car was exempt before 1 April 2025 and the employer makes a legally binding commitment to continue providing private use of the car beyond this date.
Capital raises start funding franked payouts
In 2016–17, the government pledged to limit capital gains dividend franking credits. The Budget reaffirms this policy’s implementation on September 15, 2022.
The proposed amendments will disqualify impacted dividend recipients from tax offsets and exclude the franking credit from their assessable income. Non-residents withhold taxes on dividends.
Encouragement of rental construction by lowering taxes
This policy is intended for developments with 50 or more rental units that are open to the general public. Landlords are required to provide a minimum 3-year lease for each unit, and the properties must remain in the same hands for at least 10 years before being put up for sale.
Starting in September, the price of tobacco will rise
Starting September 1, 2023, the tobacco tax and excise-equivalent customs duty will rise by 5% yearly.
15% global minimum tax
The global minimum tax laws in Australia apply to multinational groups with income taxed below 15%.
Heavy vehicle user charge hike
From 2023-24 to 2025-26, the Heavy Vehicle Road User Charge will rise 6% per litre of diesel from 27.2 cents.
General insurer tax changes
Legislation allows general insurers to file tax returns using audited financial reporting information from the new standard.
MIT withholding tax exemption extended
This initiative will raise the minimum energy efficiency criteria for existing and new clean buildings to a 6-star Green Building Council Australia or National Australian Built Environment accreditation.
Prospecting, mining, quarrying, and extractive rights
The government will amend the Petroleum Resource Rent Tax (PRRT) to clarify that “exploration for petroleum” only includes “discovery and identification of the existence, extent, and nature of the petroleum resource” and not “activities and feasibility studies directed at evaluating whether the resource is commercially recoverable.”
It will also be made plain that mining, quarrying, and prospecting rights can only be depreciated when they are used.
Bringing natural gas taxes forwards
by $2.4 billion between 2022 and 2023. The ATO will also receive $4.4 million for administration and enforcement purposes.
Industry winners identified: the hydrogen sector
The development of Australia’s hydrogen industry, the stimulation of clean energy companies, and the establishment of connections to new global hydrogen supply chains have all received commitments totalling over $2 billion.
Important aid for the tech sector
Over the course of five years, $116 million will be allocated to help advance vital technologies. This includes helping firms adopt cutting-edge technology like quantum computing and AI.
Employment of Careers for Young Children
The Early Childhood Education and Care (ECEC) industry will benefit from a number of new policies and programmes such as subsidy and financial assistance/
Dismantled the “Patent Box” system
If the taxpayer conducts the research and development for the patent in Australia, the effective corporate tax rate on the income from the patent will be lowered to 17% under the Patent Box regime.
Fuel and alcohol excise administrative streamlining has been delayed
The 2022-23 March Budget provision to simplify fuel and alcohol excise compliance has had its implementation date delayed until 1 July 2024.
Difference in Location, Film Industry
The Location Offset refund rate will increase to 30% to entice investment from high-budget film projects and create domestic employment and training possibilities.