The Federal Treasurer Jim Chalmers handed down the 2023-24 Federal Budget on 9 May 2023. The following is a list of highlights from a business, tax, and superannuation perspective.

Please read our full summary of the 2023-24 Federal Budget here.

HIGHLIGHTS

Business

• The instant asset write-off threshold for small businesses applying the simplified depreciation rules will be $20,000 (excluding GST) for the 2023–24 income year.
• An additional 20% deduction will be available for small and medium business expenditure supporting electrification and energy efficiency.
• FBT exemption for eligible plug-in hybrid electric cars will end from 1 April 2025.
• Heavy Vehicle usage charge increases from 27.2 cents by 6% per year over 3 years.
• From 1st July temporary workers minimum pay increase from $53,900 to $70,000.
• Employers will be required to pay their employees’ superannuation guarantee (SG) entitlements at the same time as they pay their salary and wages from 1 July 2026.

Superannuation

• Superannuation earnings tax concessions will be reduced for individuals with total superannuation balances in excess of $3 million from 1 July 2025.
• The non-arm’s length income (NALI) provisions (where the balance of super is increased by the actions of trustees, for example fund expenses are paid from outside of the fund)  will be amended to provide greater certainty to taxpayers.

Taxpayers

• More rigorous vetting of personal returns, particularly rental properties, GST returns, as well as enforcing timely tax and GST payments.
• Limited time amnesty for lodging outstanding tax returns and remission of late lodgement penalties.
• Income support payment base rates will be increased by $40 per fortnight.
• The minimum age for which older people qualify for the higher JobSeeker Payment rate will be reduced from 60 to 55 years.
• The workforce participation incentive measures to support pensioners who want to work without impacting their pension payments will be extended for another 6 months to 31 December 2023.
• Eligibility for Parenting Payment (Single) will be extended to support single principal carers with a youngest child under 14 years of age.
• Housing measures will be introduced to increase support for social and affordable housing and improve access for home buyers.
• The maximum rates of the Commonwealth Rent Assistance (CRA) allowances will be increased by 15% to help address rental affordability challenges for CRA recipients.
• CPI-indexed Medicare levy low-income threshold amounts for singles, families, seniors and pensioners for the 2022–23 year announced.
• Eligible lump sum payments in arrears will be exempt from the Medicare levy from 1 July 2024.

If you have questions in relation to the above, or any other matters, please do not hesitate to contact our office on 1300 620 345.