Changes from 1st July 2023
Please find below a list of changes that are in effect from 1st July 2023 that may affect you.
Superannuation Guarantee
The superannuation guarantee charge for employees is increasing from 10.5% to 11% for wages paid from 1st July 2023.
Self-Managed Superannuation Fund
From 1st July, all superannuation funds must report eligible events quarterly even where they have been eligible for annual reporting in the past. Events that must be reported include: commencement or cessation of a new pension, lump sum withdrawals (other than a pension payment) from a pension account, rollover of a pension account from one superannuation fund to a new one. If you do any activity related to a pension account, please notify me as soon as possible so that we can determine whether a report needs to be lodged to the ATO by the due date.
Fuel Tax Credits
The heavy road user charge will increase by 6%. This will also increase by 6% per year in the following 2 financial years. The fuel tax credit amount will decrease from 1st July 2023.The link to the new rates is below.
Pre-filling of Activity Statements
From July 2023, the ATO will begin prefilling W1 and W2 in activity statements with the amounts that have been reported to them using Single Touch Payroll during the reporting period.
Changes to Car Thresholds
The depreciation limit for cars will increase from $64,741 to $68,108 from 1st July. The luxury car tax threshold will also increase from 1st July from $71,849 to $76,958 and from $84,916 to $89,332 for fuel efficient vehicles.
Asset Purchases
Temporary full expensing will no longer be available from the 2024 financial year. For businesses using the simplified depreciation rules, the instant asset write-off limit will decrease to $20,000 per asset.
Increase to the Minimum Wage
The minimum wage will increase to $23.23 per hour ($882.80 per week). This takes effect from the first full pay period on or after 1st July 2023.
Sharing Economy Reporting Regime
This reporting regime takes affect for people who earn income from taxi, ride sourcing and short-term accommodation services from 1st July and requires business such as Uber and AirBnB to report income being paid to drivers and property owners using their services to the ATO. The business owners will not be impacted in the day to day running of their business, however, they may be requested to provide additional information from the businesses they source the income from (e.g. Uber, AirBnB, etc)
Changes to Benchmark Interest Rates
From 1st July the benchmark interest rate for Division 7A loans will increase from 4.77% for the 2023 year to 8.27% for the 2024 financial year.
Similarly, the benchmark interest rates for people with limited recourse borrowing arrangements (other than those through an approved third-party provider) will increase to 8.85% for the 2024 financial year.
Changes to Minimum Pension Withdrawals
The 50% reduction in minimum pension withdrawal amounts that was put in place during covered ceases from 30th June 2023.
Increases to ASIC Fees
The ASIC annual review fee will increase from $290 to $310 for Companies and $59 to $63 for special purpose companies. The fine amounts for late lodgment will also increase from $87 to $93 for forms lodged or fees paid less than one month past the due date and from $362 to $387 for forms lodged or fees paid more than one month past the due date.
