Autumn 2023 Newsletter

We have been focusing on helping our clients move towards consolidating paperwork and getting themselves ready for the end of financial year.

With tax time just around the corner, it is a good time to get ahead of the curve and start to think about any strategies that you would like to implement to get the best result from your return.

There is no time like the present to review your situation and develop a plan of action. Our friendly team are always willing to help. Simply, get in touch with us by calling
(03) 9371 5858 to arrange a confidential chat.

From Leo and the team at Vargiu Accountants.

Latest Updates

Changes to claiming Working From Home (WFH) expenses

With working from home now becoming the new norm, especially since Covid-19, it’s important to keep up to date with changes to how you can claim for expenses on your annual tax return.

The Fixed Rate cost for calculating working from home expenses has increased from 52 cents to 67 cents per work hour.

The ATO has also changed the record keeping standards when claiming working from home expenses. From 1st March 2023, you will need to record all hours of work for the entire income year, either through

• Timesheets
• Rosters
• Logs of accessing employer/business systems
• A diary for the full year

Feel free to contact us for an example of the new record keeping diary.

Increases to the Commonwealth Senior Health Care Card threshold

More older people can now benefit from having a Commonwealth Seniors Health Care Card (CSHC) with increases made to the income threshold.

From 4 November 2022, the CSHC income thresholds were increased to:

• Single: $90,000 a year (up from $57,761)
• Couples: $144,000 a year (up from $92,416)
• Couples separated by illness, respite, or prison: $180,000 (up from $115,522)

Feel free to contact us for assistance in calculating your income.

Fringe Benefit Tax (FBT) removed for electric and low emissions vehicles

If you use electric or low emission cars, then tax reforms, implemented from 1 July 2022, are going to assist you this end of financial year.

From 1 July 2022, you no longer need to pay FBT if you privately use an electric car. There are conditions that must be met for the car to qualify. Please contact us for a further discussion.

Superannuation Guarantee Contribution (SGC) rates set to increase in July

The percentage rate for Super Guarantee Contribution (SGC) payments is set to rise to 11% from the 1 July 2023. This means that employers will be contributing more super to employee’s super funds.

Currently at 10.5%, this increase is part of the annual legislated increase which are scheduled to be implemented at a rate of 0.5% per year until 2025, when the total SGC will be 12%.

Important Due Dates To Remember

We have compiled a list of upcoming ATO deadlines that you may need to meet.

• Income tax returns for companies and superannuation funds with a total income over $2 million were due for lodgement by the 31 March 2023. All other entities who have yet to lodge their 2022 tax returns need to do so by the 15 May 2023.
• Business Activity Statements (BAS) for the March quarter are due for lodgement by the 28 April 2023 (self lodgement) or by the 26 May 2023 if lodged by a tax agent.
• Monthly Instalment Activity Statements (IAS) are due either the 20th or 21st of the following month. Make sure you lodge your April 2023 IAS by the 21 May 2023.
• Superannuation Guarantee Charges for quarter 3 (Jan to March) of FY2023 are due for lodgement on the 28 April 2023

Things To Consider

Popular methods of claiming assets on your business tax return

When you purchase an asset for your business, do you consider how you can effectively claim the cost on your business tax return? Temporary expensing.

Temporary full expensing allows you to claim the business portion cost of an asset as an immediate deduction on your tax return in the year it is first used or installed ready for use by the 30th June 2023.

Start thinking about tax planning 2022/2023

Please reach out and organise a tax planning meeting with our office to raise any concerns or implement strategies. Some of the topics mentioned in this newsletter, such as Tax Write-offs, superannuation, FBT for the vehicle, are common strategy that could be relevant for you.