With the end of the financial year looming, the ATO has announced its three key focus areas for Tax Time 2023 – rental property deductions, work-related expenses, and capital gains tax (CGT). To maximise your claims in this area and protect yourself from ATO audits and adjustments, we inform readers of the type of records that the ATO will be looking for in the event that your claim is reviewed or audited. In particular, the new rules around work-from-home deductions require attention to detail when substantiating your claim.
With the total superannuation sector worth more than $3.5 trillion at the end of March 2023, superannuation is serious business. There are many types of superannuation funds available but sometimes having too many to choose from can be confusing. However, picking the right super fund is important as it could impact how much you may have to retire on in the future. This piece provides a brief summary of the five main types of funds and highlights the difference between each fund.
Meanwhile, it was confirmed in the federal budget that June is the final month for your business to take advantage of Temporary Full Expensing (TFE) on depreciating assets…but get in before 1 July! From that date forward, the write-off threshold will revert to $20,000 for small businesses (aggregated annual turnover of less than $10 million) and $1,000 for larger businesses. Most business assets are eligible, including machinery, tools, furniture, business equipment etc.
This edition features pieces on:
- Maximising cashflow: The predicted slowing of the economy in 2023-24 along with the pay-day super guarantee (SG) proposal are sure to make cashflow more important than ever for business over the coming months and years, noting that it is one of the biggest difficulties faced by business. There are some simple steps you can employ, in consultation with your tax agent to maximise your cashflow moving forward.
- Side-hustles: With the cost of living skyrocketing, have you taken up a side-hustle? With new and emerging ways to make money, the ATO is reminding taxpayers to consider if they are ‘in business’ and to declare to their tax agent if they are engaged in a side-hustle.
- Super pensions and the senior’s health card: Are you a self-funded retiree who does not qualify for the Age Pension? If you’ve answered yes, then help may be available for certain living expenses by way of the Commonwealth Senior’s Health Card. But how does your super pension impact your health card eligibility?
- Tax time focus areas: With the end of the financial year on our doorstep, the ATO has announced that it will focus on the following areas this Tax Time – capital gains, work-related expenses, and rental property deductions. In view of this, what are the record-keeping requirements in these areas?
- What type of super funds can you contribute to?: There are five types of super funds you can contribute to. This article provides a brief summary of those types and highlights the differences between each.
- Final days of generous depreciation: Temporary full expensing (TFE) ceases from 1 July. From that date, less generous depreciation rules will come on stream. What do you need to do to in order to take advantage of the final days of TFE?
Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.
ATO Key Dates
To view the ATO’s key dates for June, please click here.
