End of Financial Year - 2023
In this edition, we highlight key considerations for the end of the financial year.
Temporary full expensing rules are ending 30 June 2023
Temporary full expensing of assets was one of many measures the Government introduced to stimulate the economy during the COVID-19 pandemic.
It allowed businesses with an aggregated turnover below $5 billion to deduct the full cost of all new eligible capital assets first held and first used or installed ready for use for a taxable purpose from 6 October 2020 until 30 June 2023.
From 1 July 2023, this measure has been removed. However, businesses with turnover less than $10 million will still be able to immediately deduct the cost of eligible assets, where the purchase price is less than $20,000.
Personal deductible superannuation contributions
Personal super contributions are the amounts you contribute to your super fund from your after-tax income (that is, from your personal savings). Please note that you may be able to claim a tax deduction for these contributions if you meet certain eligibility rules.
In most instances, the concessional contribution cap is $27,500 for the year ended 30 June 2023 and this includes any compulsory super contributions your employer makes on your behalf.
Please contact us if you want to understand the tax benefits of claiming a deduction for a personal superannuation contribution.
Certain superannuation pensions and annuities are subject to rules that determine minimum and maximum benefits to be paid in a financial year.
Please make sure that you have met your minimum pension requirements before 30 June 2023. The minimum percentage rates can be found at the following link.
Please contact us immediately if you believe you have not met your minimum pension requirements.
Increase in super guarantee charge from 1 July 2023
If your business has employees, or hires eligible contractors, you'll need to ensure your payroll and accounting systems are updated to reflect the new super guarantee (SG) rate of 11% from 1 July 2023.
Payroll - end of year finalisation through STP
The end of year payroll finalisation declaration must be submitted to the ATO for each employee by 14 July 2023. Please ensure the payroll has been reconciled before the declaration is made to the ATO.
Please do not hesitate to contact us if you have any queries in relation to your tax and accounting matters.