Last night, Treasurer Jim Chalmers handed down the 2023 – 2024 Budget in Parliament House.
This is the first main budget of the Albanese Labor Government after they handed down a post-election budget in October 2022. This is the first budget surplus since Peter Costello was the Treasurer.
MGI Australasia is pleased to present our summary of the recently released federal budget and its implications for our clients.
As your trusted accounting firm, we have analysed the budget and identified key changes that may impact your financial planning and decision-making. In this report, you will find a breakdown of the major provisions of the budget and their potential impact on your taxes, investments and overall financial health.
Some of the highlights include:
- Small businesses instant asset write-off threshold – to be increased to $20,000 for 2023-24 for businesses with aggregated annual turnover of less than $10m. Full Expensing rules will cease to apply from 1 July 2023.
- Small Business Energy Incentive – businesses with annual turnover of less than $50m will be able to claim an additional 20% deduction on spending that supports electrification and more efficient use of energy. Eligible assets or upgrades will need to be first used or installed ready for use between 1 July 2023 and 30 June 2024
- Small business lodgement penalty amnesty – will be provided for small businesses with aggregate turnover of less than $10m to encourage them to re-engage with the tax system
- FBT rules for electric vehicles (EVs) – the eligibility of plug-in hybrid electric cars will sunset from 1 April 2025 from the FBT exemption for eligible electric cars
- MIT withholding tax concession for data centres and warehouses – the “clean building” managed investment trust withholding tax concession will be extended to data centres and warehouses that meet the relevant energy efficiency standard, where construction commences after 7:30 pm (AEST) on 9 May 2023
- Super account balances above $3m – the Budget confirmed the Government’s intention to apply an additional 15% tax on total superannuation balances above $3 million from 1 July 2025
- Payday super – employers will be required to pay their employees’ super guarantee at the same time as their salary and wages from 1 July 2026
- Pension drawdowns: no reduction in minimum – the Budget did not announce a further extension to 2023-24 of the temporary 50% reduction in the minimum annual payment amounts for superannuation pensions and annuities
We hope that this summary will help you better understand the implications of the federal budget and make informed decisions about your financial future. If you have any questions or concerns, please do not hesitate to reach out to us.
This budget analysis was compiled by MGI South Queensland.