The ATO is encouraging small businesses to take advantage of certain measures when lodging their tax returns for the 22-23 year.
- Small business boosts now available – a “bonus” 20% tax deduction for eligible expenses is available for small businesses investing in digital operations (eg technology, cloud-computing, eInvoicing, cyber security), or skills and training for new and existing employees. For every $100 that was spent, a $120 tax deduction is available (caps apply) for investments made between 29 March 2022 and 30 June 2023.
- Temporary full expensing (“TFE”) ended on 30 June 2023 – small businesses can still claim an immediate deduction for the cost of eligible assets first used or installed ready for use by 30 June 2023 in their 22/23 tax returns. The end of TFE on 30 June 2023 means that the cost of assets that are not already being used or installed ready to use by 30 June 2023 are not eligible for an immediate deduction.
- Deduction rate changes – both the running a business from home deductions and the car expense deductions have changed for this tax time. The new cents per kilometre rate is 78 cents and the car limit has increased to $64,741 for 2022-23. The working from home deduction methods have also changed. Small businesses can choose one of two methods to claim working from home deductions, ie either the actual cost or fixed rate method.