Last night’s 2023 Federal Budget announcement (the first labour budget announcement in almost a decade) hasn’t delivered too many surprises. We have summarised a few points that may be of interest to you or affect your business:
Nothing changed of any material consequences in respect of:
- Changes in tax rates legislated for 1 July 2024 remain in place, despite all of the debate beforehand.
- Superannuation has been left unchanged (save for a change to Downsizer).
The following measures will not be extended:
- Temporary full expensing: this measure is set to expire on 30 June 2023, at this time the instant asset write-off threshold will revert to $1,000. This means that if you want the Tax Benefit, the Asset has to be installed by 30 June 2023.
- Loss carry back: the 2022-23 FY will be the final year that this measure can be used by companies.
- Low and middle income tax offset (LIMTO): the final year for this tax offset was the 2021-22 FY and has now been fully replaced by the low income tax offset (LITO).
Fringe Benefits Tax Exemption for Electric Vehicles
- Commencing 1 July 2022, a FBT exemption will apply to battery, hydrogen fuel cell and plug-in hybrid electric cars that are below the luxury car tax threshold for fuel efficient cars (being $84,916 for the 2022-2023 financial year).
- The exemption also only applies to ‘cars’ and therefore does not apply to vehicles designed to carry one tonne or more, or nine passengers or more.
If you wish to discuss how the 2023 Budget affects you, or find out about other announcements, please do not hesitate to get in touch with us.
– Ian Hogbin, James Davis, Brad Sheaves & Catherine Stojcevska