FY23 Key Changes
There are a number of important changes that came into affect from 1 July 2022.
We have summarised these key changes for businesses, superannuation and individuals below.
Key changes from 1 July 2022
Business
The Superannuation Guarantee (SG) rate increased from 10% to 10.5% on 1 July 2022 and will continue to increase by 0.5% each year until it reaches 12% on 1 July 2025.
The $450 threshold test has been removed and all employees aged 18 or over need to be paid Superannuation Guarantee regardless of how much they earn. For employees under the age of 18, Superannuation Guarantee is only paid if the employee works more than 30 hours per week.
Temporary full expensing of depreciable asset purchases has now been extended for eligible businesses until 30 June 2023. Other than the extension, the operation of the regime remains the same.
Employees will no longer have a taxing point simply because they cease their employment on or after 1 July 2022 under changes to employee share scheme (ESS) rules.
Small business GST and PAYG tax instalments will be calculated with a lower uplift factor resulting in lower instalments. The total tax liability will remain the same, small businesses will just pay less pre-paid instalments throughout the year.
Superannuation
From 1 July 2022, individuals aged younger than 75 years old will be able to make non-concessional contributions to superannuation (previously it was under 67) without having to meet a work test.
The above change will also see those aged under 75 be able to access the ‘bring forward rule’ if your total superannuation balance allows. The bring forward rule enables you to contribute up to three years’ worth of non-concessional contributions to your super in one year.
The work test will still apply for personal concessional (deductible) contributions for those aged between 67 and 75. Under the new legislation, the work test can be met in any period in the financial year in which you made the contribution. This is different to the rules applying until 30 June 2022, which required you to meet the work test prior to contributing.
The Government has extended the 50% reduction of minimum annual pension payments required for account-based pensions for the 2023 financial year.
From 1 July 2022, eligible individuals aged 60 years or older can choose to make a ‘downsizer contribution’ into their superannuation of up to $300,000 per person ($600,000 per couple) from the proceeds of selling their home. Previously you needed to be 65 years or older to utilise downsizer contributions.
The value of voluntary super contributions that can be withdrawn under the First Home Saver Scheme increased to a total of $50,000 from $30,000.
Individuals
The ATO’s simplified 80 cents per hour short-cut method for those working from home ended on 30 June 2022. For the 2023 financial year, you will need to maintain evidence of actual expenses incurred for internet, phone and equipment purchases.
Cents per km rate for claiming motor vehicle expenses has increased from 72 cents per km to 78 cents per km in the 2023 financial year.