The 2023 tax year runs from July 1 2022 to June 30 2023. We highlight the changes that have come into effect on 1 July 2022.
Business
- Superannuation guarantee increased to 10.5%. more here…
- $450 super guarantee threshold removed for employees aged 18 and over. more here…
- Lower GST and PAYG tax instalments for small businesses. (The total tax liability remains the same; the amount the business needs to pay through the year is lowered). The idea of the change is that small businesses will have better cash flow during the year.
- ATO guidance on how profits of professional firms are structured comes into effect introducing new risk criteria
- New guidance on unpaid trust distributions to corporate beneficiaries comes into effect that may treat some unpaid distributions as loans and trigger tax consequences.
Individuals
- Superannuation guarantee increased to 10.5%. more here…
- Work-test repealed for those under 75 to make or receive non-concessional or salary sacrifice super contributions (the work test still applies to personal deductible contributions)
Age for downsizer super contributions reduced to 60 years and older- The value of voluntary super contributions that can be withdrawn under the First Home Saver Scheme increased to a total of $50,000
- New ATO guidelines on trust distributions come into effect, primarily impacting distributions to adult children
- The home loan guarantee scheme extended to 35,000 per year for first home buyers and 5,000 per year for single parents
- Australia’s minimum wage increased to $21.38 per hour or $812.60 per 38-hour week (before tax). Casual employees covered by the national minimum wage also get at least a 25% casual loading.
