What's new for 2023 tax time?
LMITO is ending - The Low and Middle Income Tax Offset ended on 30 June 2022 and is not available for the 2023 tax year. Keep in mind that this could make your tax refund lower than in previous years.
Covid-19 Test claim - Covid-19 tests are tax deductible where they relate to being needed for work. Normal substantiation requirements apply.
Motor Vehicle cents per kilometre claim – The motor vehicle cents per kilometre claim will be the same as last year, 72 cents claimable per kilometre.
Revised Working from Home claim - When claiming a deduction for working from home this tax time, the fixed rate method has been increased from $0.52 to $0.67 per hour, and you no longer need a dedicated home office space. Learn more here: Working from home deduction changes for 2022–23 | Australian Taxation Office (ato.gov.au)
Low & Middle Income Tax Offset - The Low & Middle income tax offset has increased from $1080 to $1500 for 2022. This may be it's final year however as it has not been extended yet.
Skills & training boost - an additional 20% deduction may be claimable for eligible courses. Learn more here: Small Business Technology Investment Boost and Small Business Skills and Training Boost | Australian Taxation Office (ato.gov.au)
Asset Write off - Full expensing of an asset is available to Small Business Entities regardless of whether it is utilising simplified depreciation for assets acquired and first used between 7.30 pm AEDT on 6 October 2020 and 30 June 2023.
STP finalisations are to be done by 14/07/2022, so individual payment summaries should be tax ready by then.
As the Australian Taxation Office continues to raise the degree of their audit activity, I strongly recommend that you give attention to the documentation requirements concerning the claims that you are likely to make in the 2022 income year. This means ensuring that you have your receipts or other substantiating documents on hand to justify your claims.
Tax Planning
The tax office have produced a list of occupation and specific industry guides with 39 occupations already listed and definitely more to come. These guides specify what claims the tax office expect you to make and what they deem unreasonable. They are quite detailed and I definitely recommend looking through the list to see if your occupation is listed so you can know what view the ATO have and what they expect to see in your tax return. https://www.ato.gov.au/Individuals/Income-and-deductions/Occupation-and-industry-specific-guides/
The good news for you is that I continue to be focused on keeping up to date with the ever changing taxation landscape whilst getting the best results possible for you.
I continue to strive to make my service exceptional – so contact me to book either your: in-home, telephone, email or drop-and-go tax appointment at your earliest convenience. I look forward to hearing from you soon.
LMITO is ending - The Low and Middle Income Tax Offset ended on 30 June 2022 and is not available for the 2023 tax year. Keep in mind that this could make your tax refund lower than in previous years.
Covid-19 Test claim - Covid-19 tests are tax deductible where they relate to being needed for work. Normal substantiation requirements apply.
Motor Vehicle cents per kilometre claim – The motor vehicle cents per kilometre claim will be the same as last year, 72 cents claimable per kilometre.
Revised Working from Home claim - When claiming a deduction for working from home this tax time, the fixed rate method has been increased from $0.52 to $0.67 per hour, and you no longer need a dedicated home office space. Learn more here: Working from home deduction changes for 2022–23 | Australian Taxation Office (ato.gov.au)
Low & Middle Income Tax Offset - The Low & Middle income tax offset has increased from $1080 to $1500 for 2022. This may be it's final year however as it has not been extended yet.
Skills & training boost - an additional 20% deduction may be claimable for eligible courses. Learn more here: Small Business Technology Investment Boost and Small Business Skills and Training Boost | Australian Taxation Office (ato.gov.au)
Asset Write off - Full expensing of an asset is available to Small Business Entities regardless of whether it is utilising simplified depreciation for assets acquired and first used between 7.30 pm AEDT on 6 October 2020 and 30 June 2023.
STP finalisations are to be done by 14/07/2022, so individual payment summaries should be tax ready by then.
As the Australian Taxation Office continues to raise the degree of their audit activity, I strongly recommend that you give attention to the documentation requirements concerning the claims that you are likely to make in the 2022 income year. This means ensuring that you have your receipts or other substantiating documents on hand to justify your claims.
Tax Planning
The tax office have produced a list of occupation and specific industry guides with 39 occupations already listed and definitely more to come. These guides specify what claims the tax office expect you to make and what they deem unreasonable. They are quite detailed and I definitely recommend looking through the list to see if your occupation is listed so you can know what view the ATO have and what they expect to see in your tax return. https://www.ato.gov.au/Individuals/Income-and-deductions/Occupation-and-industry-specific-guides/
The good news for you is that I continue to be focused on keeping up to date with the ever changing taxation landscape whilst getting the best results possible for you.
I continue to strive to make my service exceptional – so contact me to book either your: in-home, telephone, email or drop-and-go tax appointment at your earliest convenience. I look forward to hearing from you soon.
Liability Limited By A Scheme Approved Under Professional Standards Legislation
Liability Limited By A Scheme Approved Under Professional Standards Legislation