Here are our key takeaways for business and superannuation from last night’s budget:
1. Current <150K asset write-off rules will cease on 30 June 2023. To claim assets under the current rules the asset must be installed/delivered and ready for use before 30 June 2023. The new rules for next FY 2024 i.e. starting 1st July 2023, allow asset write-offs for assets below 20K for businesses with a turnover below 10mil. The limit is set to revert to $1K for the following year, but we will see what’s in next years budget. I sincerely hope they don’t start requiring us to depreciate small items like laptops and office furniture like we used to do.
2. Super for employees will be paid on the pay day starting 1/7/26. This is a good measure to assist with smoother cash flows, and more efficient payroll processing.
3. Super balances above 3mil will be taxed at 30% from 1/7/25. This figure is not planned to be indexed, which is sneaky. Whilst it only captures 80,000 individuals initially, that number will grow quite quickly.
4. Lots of money is being thrown at different ATO audit programs. Some of this is field activity and direct audits, other money is being used to create more intelligent analytical tools and data matching. We have already seen a substantial increase in audits so be sensible.
If you have any questions about how the budget measures might effect you, please feel free to contact us.