The federal government detailed new legislation in July 2023 for small businesses seeking energy efficiency upgrades. The Small Business Energy Incentive offers a 20% tax deduction on these upgrades, valued at up to $100,000.
The Technology Investment Boost, initially announced in the last federal budget in March and enacted into law just before the 30 June expenditure deadline, grants small businesses with a turnover of less than $50 million a 20 percent bonus deduction on technology-related expenses that support their digital operations and digitisation efforts.
The ATO has obtained extensive data on residential investment properties. The data is obtained from property managers, landlord insurance providers and financial institutions providing loans for residential investment properties, as well as income protection policy information. This data will be used to identify taxpayers with incorrect information in their tax returns and educate them. The ATO plans to pre-fill more information in future years.
The ATO is encouraging small businesses to take advantage of certain measures when lodging their tax returns for the 22-23 year.
It can be easy to ignore emails and text messages from myGov, however we cannot stress enough just how crucial it is to pay attention to these alerts. These messages could contain vital information regarding outstanding lodgements or debts to the ATO.
The ATO has identified three main areas of focus for this tax season: rental property deductions, work-related expenses, and Capital Gains Tax (CGT). These are areas where mistakes are frequently made and the ATO is now prioritising them.
The costs associated with Christmas parties are exempt from FBT if it occurs on a working day, on the business premises, and consumed by current employees. The property benefit is not available for associates (spouses, friends, children).
In early September, the Treasury released draft legislation that will introduce a Skills and Training Boost and a Technology Investment Boost tax incentive. These incentives will support businesses and address skill shortages in the workforce
Beware of tax scams as we head into the new financial year. Tax fraud and scams happen year round, but with tax on people’s minds, they can often be more susceptible to falling for scams at this time of year.
On 13 July 2022, the ATO issued its final position on the Division 7A consequences on unpaid present entitlements (UPEs) to corporate beneficiaries. This final tax determination was initially released in draft in February of this year and remains largely unchanged.