The 2023 budget was more significant for items it did not mention, than for changes introduced.
Three key tax concessions will end:
Temporary Full expensing which allows small businesses to fully write off assets (apart from motor vehicles excluding utes) expires on 30th June 2023 – although see new measure below:
The Low and Middle Income Tax Offset will not apply to 2023 individual tax returns. This means that for many individual taxpayers, their refunds will reduce by $1,500.
The rate of minimum pension drawdowns has been at 50% of set rates. This stops on 30th June 2023 so for the 2024 year standard rates apply i.e. 4%, 5% etc.
No change to proposed Stage 3 tax cuts due to start from 1st July 2024.
Measures introduced by the budget
Small business $20,000 instant asset write off.
Small business energy incentive – increasing a deduction by 20% on eligible assets that support electrification and more efficient use energy such as electric heating/cooling.
Items introduced but taking effect in future years
FBT exemption for plug-in hybrid cars to finish 31st March 2025 (Electric vehicles continue to be FBT exempt).
Pay day superannuation, where employers will be required to pay employees super on the same day they pay employee wages commencing on 1st July 2026.
For those lucky enough to have more than $3m in super, the fund will pay an additional 15% tax on the income derived from assets above $3m starting on
the 1st July 2025.