Key tax changes from 1 July 2023

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From 1 July 2023, the Government have proposed and made some key tax changes for Australians and small business owners.

Super Guarantee Rate is now 11%

If you have employees, you will need to check that your payroll systems have been updated to reflect the new rate for the first pay cycle in the new financial year. The rate has increased by 0.5% to 11%.

For super contributions made before 30 June, the existing 10% rate will apply but these are due by 28 June 2023.

In good news, if Aintree Group look after your bookkeeping and payroll, this will be taken care of for you! 

Changes to Instant Asset Write Off

The previous Instant Asset Write-Off rules have expired and will change on 1 July.

Small businesses with turnover of less than $10 million will still be able to access the instant asset write off for assets costing less than $20,000 if they are used or installed ready for use between 1 July 2023 – 30 June 2024. 

For more on this change, click here.

Temporary Payroll Tax Surcharge begins in Victoria

From 1 July, a rate of 0.5% will apply for businesses with national payrolls above $10 million. Businesses with national payrolls above $100 million will have to pay an additional 0.5%. 

This surcharge will end on 30 June 2033.

Small Business Energy Incentive claim period begins

As part of this incentive, small businesses can claim an additional 20% deduction (up to a $20,000 cap) for depreciable assets that support the electrification and more efficient use of energy if they are first used or installed for use between 1 July 2023 and 30 June 2024. 

You can only claim if your annual turnover is less than $50 million.

This legislation is still in draft form, but if and when it is passed, it will apply from 1 July 2023.

For more on the Small Business Energy Incentive, click here.

Access to the Government’s Home Guarantee Scheme

The eligibility criteria for the Home Guarantee Scheme now includes joint applications from “friends, siblings, and other family members” and to those who have not owned a home for at least 10 years. 

To learn more about the Home Guarantee Scheme, read our blog here.