The Low and middle income tax offset (LMITO) was abolished on 30 June 2022. Therefore, it does not apply for 2023 financial year.  This can affect your tax returns in subsequent years. Your tax outcome can result in lower tax refund by $1500 because the maximum offset available in the 2022 financial year was $1500. The Low-income tax offset (LITO) is different and is applicable from 1 July 2022, and depends on what you earned as follows: $37,500 or less, you receive $700 Between $37,501 and $45,000, you receive $700 less 5 cents for every dollar above $37,500 Between $45,001…

The Australian Taxation Office (ATO) has implemented new laws to increase security with the client-to-agent linking process for all entities with an ABN, excluding sole traders or individual taxpayers. The new law commences from 13th November 2023, for the purpose of protecting all parties against identity theft. This measure involves the client nominating an agent for online services, as an extra authorisation step, to prepare income tax returns, Fringe Benefits Tax returns, BAS returns and more. Note, however, existing business clients are not affected if their existing arrangements have not changed. The entities that are included are: Companies, including strata…

Certain eligible electric cars will not attract Fringe Benefits Tax from 1st July 2022. This means no FBT will be payable by employers who provide an electric car for private use so long as all the following conditions are met: The car is a zero or low emissions vehicle. The first time the car is both held and used is on or after 1st July 2022. The car is used by a current employee, or their associates e.g. family. Luxury Car Tax has never been payable on the importation or sale of the car. However, the government will complete a…

The Government has announced it will deliver tax cuts to all Australian taxpayers, to provide cost-of-living relief. From 1 July 2024, the tax cuts will: reduce the 19 per cent tax rate to 16 per cent reduce the 32.5 per cent tax rate to 30 per cent increase the threshold above which the 37 per cent tax rate applies from $120,000 to $135,000 increase the threshold above which the 45 per cent tax rate applies from $180,000 to $190,000 Legislation will be introduced to enact these changes. The Government also announced that it will increase the Medicare levy low-income thresholds for 2023-24. This means people on lower incomes continue to pay a reduced levy rate or…

The following points were mentioned in the 2023-24 Federal Budget by Australia’s Treasurer, the Hon. Jim Chalmers MP, on Tuesday, 9th May 2023. Instant asset write-off This measure refers to fully expensing an asset with a threshold of up to $20,000 per eligible asset. The catch is that the small business revenue must be below $10 million per annum in financial year. The time-frame for the first use or installation of the eligible asset covers only from 1st July 2023 to 30th June 2024 financial year. Electricity The Federal Government will partner with the state and territory governments to provide…

As part of the Australian Government’s commitment to progress the tax and regulatory framework for a corporate collective investment vehicle (CCIV) a new over-arching rule and regulation will commence on 1 July 2022. So, what does this mean? Let’s break down the wording. The word ‘corporate’ comes from the Latin word for a body (corpus). In this case, it means a legal corporate entity (body), or a company, created under the Corporations Act 2001, for the purpose of conducting business. A company per this Act, must have a director and shareholders (the owners). Hence, in the case of our CCIV,…

Director Identification Number (DIN) In the words of British poet John Masefield’s poem, Sea Fever, ‘And all I ask is a tall ship and a star to steer her by;’ we find is not too dissimilar to a director steering their corporate ship on a successful business journey. However, back in 1916, when Masefield’s poetic works were in a much simpler world, we find that today there are still more new rules and regulations pertaining to directors, this time relating to their identity. This new director identity situation applies to all company directors, registered Australian bodies, a registered foreign company…

If someone had mentioned the word ‘uber’ to you over ten years ago, then, unless you were German, you would wonder what they were talking about. This German word means ‘over’ and is now a well-established business throughout a good part of the world. Uber set out as a share driving system with the passengers sharing the journey’s price to pay a private driver. The business itself started in San Francisco in March 2009 and is how we associate with it today. The Uber business is in direct competition with the taxicab industry. The taxi was fitted with a taximeter…

A government incentive for businesses considering employing young job seekers may be available to you. If your business is considering hiring additional staff, you may be eligible for the JobMaker Hiring Credit. This scheme runs from 7 October 2020 to 6 October 2021. The maximum claim period is for 12 months from the employment start date for each newly created job. The incentive is designed for young people: Eligible additional employees aged 16 to 29: $200/week.Eligible additional employees aged 30 to 35: $100/week. The maximum amount is $10,400 for each newly created job. Still, it cannot exceed the amount the…