Low and middle income earners will face an increased tax liability of up to $1500 when they lodge their 22/23 income tax returns.
This is due to the low and middle income tax offset (LMITO) not being extended and no replacement tax relief was offered in the most recent budget announcements.
As of 1 July 2023, temporary full expensing (TFE) will cease and small businesses (annual turnover of less than $10 million) face a less generous depreciation of assets
with the replacement instant asset write-off maximum amount of $20k.
Assets costing less than $20k that are first used or installed ready for use between 1 July 2023 and 30 June 2024 will be eligible for the full cost deduction.
Assets over $20k will become part of the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year thereafter.
Larger businesses have had the write-off threshold cut to $1k.
TFE is still available until 30 June 2023.
If you have any questions please give us a call on 03 9682 7011 to discuss.
