The federal budget has been announced. Here are the top 4 highlights this year.
1. Small Business Instant Asset Write-Off
From 1 July 2023, businesses with annual turnover less than $10M will have access to an immediate tax deduction for eligible depreciable assets that cost less than $20K (must be installed and ready for use in the 2024 Financial year).
2. Small Business Energy Incentive
Business with annual turnover less than $50M, will have access to a 20% bonus tax deduction for eligible assets supporting electrification and efficient use of energy.
3. Stage 3 Tax Cuts Remaining at This Stage
Set to apply from 1 July 2024 –This would change the tax rates from 32% and 37% being reduced to 30% and an increase to the top tax bracket to $200,000. This would mean tax savings for those earning $45,000 or more.
Low Income Tax Offset (LITO) still due to end 2022-23 financial year.
4. Pay Day Super
From 1.7.2026, employers will be required to pay superannuation guarantee obligations on the same day as paying their employees salaries and wages rather than the current minimum quarterly requirement.