2023 Tax Time

Superannuation Contributions

  • Individuals under 67 are able to contribute up to $27,500 pa to superannuation and claim a tax deduction (those aged 68-74 must pass a works test first). Note, this is a combined total of employer and personal concessional contributions. To be tax deductible the contribution must be received by your superannuation fund by 30/6/2023. Super Clearing Houses can take up to 5 days to process this transaction, if you want to top-up your superannuation contributions we recommend immediate action.
  • Individuals with superannuation balances under $500K at 1st July 2022 also have the ability to carry forward unused contribution caps from 2018/19, 2019/20, 2020/21 & 2021/22 – please contact our office for an analysis of your individual circumstances

Instant Asset Write-Off 

  • If you operate a business (turnover below $500m) you can claim an immediate tax deduction for each asset purchase (no maximum cap). The asset can be new or used but must be installed ready for use by 30/6/23 to be tax deductible this financial year. The instant asset write-off reduces to $20,000 on 1st July 2023 so this is the final opportunity purchase any business asset and claim an immediate tax deduction.

Capital Gains 

  • If you have realised a capital gain during the financial year, review other asset holdings to see if there are any unrealised capital losses that could be sold to minimise your capital gains tax

Business Prepayments 

  • Small businesses are able to prepay expenses up to 12 months in advance and claim a tax deduction in the year of payment. You may consider prepayment of the following expenses;
    • Rent on your business premises,
    • Interest on your Investment loan,
    • Professional/Industry Memberships and subscriptions

Review & Write-off any Bad Debts

Other reminders in the lead up to the end of the financial year; 

  • If you are in pension phase, ensure you have withdrawn your minimum pension prior to 30/6/2023. 

Changes from 1st July 2023 

  • The Superannuation Guarantee rate increases to 11% (currently 10.5%). 
  • Instant Asset write-off reduces to $20,000 per asset for small business. To qualify as a small business your aggregated turnover must be less than $10m pa.
  • The FBT exemption on Electric and Plug-in hybrid vehicles continues. However please note, the sunset for eligibility for Plug-In hybrids is 30th April 2025. Purchases after this date will no longer be FBT exempt. Please contact our office if you wish to discuss eligibility for this FBT exemption as there are a number of criteria to be met.
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