Please take note of the following tips for your 2022/23 individual tax return:
We cannot start preparing individual tax returns until mid-to-late July. This is a recommendation from the ATO and provides time for employers, banks, Centrelink, etc. to finalise their data with the ATO which is matched with your tax return.
Where practical, we encourage all clients to send in their end of year tax documents electronically.
We also encourage phone interviews (if required) and electronic signatures.
Did you know? We are able to access many of your details including payment summaries from your employer, interest on bank accounts, dividends and private health insurance information directly from the ATO. This information becomes available to us progressively throughout July.
Our standard fees to complete your 2023 individual tax return are as follows:
Tax Return (individual) - $220
Tax Return (Couples) - $407
Additional Schedules - $66 per schedule
Please note that the above is a guide only and fees can vary based on complexity. For a personalised quote please contact our team.
Working from home – removal of shortcut method and changes to record keeping requirements.
The fixed rate method for calculating your deduction for working from home expenses has been revised. The revised fixed rate method is 67 cents per work hour and available from 1 July 2022.
To use the revised fixed rate method, you must:
Incur additional running expenses as a result of working from home
Have a record of the total number of hours you work from home and the expenses you incur while working at home
Have records for expenses that the fixed rate per work hour doesn't cover and be able to show the work-related portion of those expenses (generally includes the work-related use of depreciating assets such as office furniture and technology).
The 67 cent fixed rate method includes the additional running expenses you incur for:
home and mobile internet or data expenses
mobile and home phone usage expenses
electricity and gas (energy expenses) for heating, cooling and lighting
stationery and computer consumables, such as printer ink and paper
The ATO have released a handy calculator to assist you in understanding and calculating your home office expenses – please click here.
If you don't use the revised fixed rate method, you need to use the actual costs method. You can no longer use the shortcut method. For details, please click here.
Low and Middle Income Tax Offset no longer available The low and middle income tax offset (LMITO) ended on 30 June 2022. It is not available from 2022–23. This is one of the key reasons you may receive a lower refund than expected or a tax bill this year. Please click here for further information.
Self-Education Expenses Threshold Removed Before 1 July 2022, you were required to reduce your allowable work-related self-education expenses by $250 to calculate your deduction. The $250 non-deductible threshold has been removed for 2022–23.
NSW Land Tax Thresholds You must register for land tax if the value of your taxable land is above the land tax threshold of $969,000. Certain land (such as your principal place of residence) is exempt for land tax purposes. You can calculate the value of your taxable land using this link here. If you are concerned whether you may be required to be registered for land tax purposes, please contact our office so we can assist you further.
ATO Data Matching The ATO collects data from a wide range of third-party sources and matches this data with information included in your tax return. Examples include:
Banks, financial institutions and investment bodies
State Motor Vehicle registering bodies (motor vehicles sold, transferred or newly registered)
International Treaty Partners (foreign source income)
Online selling platforms (quantity and value of online sales)
Sharing economy facilitators (such as Uber and AirBnB)
Stock exchanges and share registries (share transactions)
Businesses in the building and construction industry
Cryptocurrency service providers (purchase and sale information)
If you do not provide us with any of the above and we are notified by the ATO that you have received income or disposed of property/shares/crypto then we will be in contact with you.
Temporary Technology Investment Boost - Small businesses will be allowed an additional 20% tax deduction to support their digital operations and digitise their operations. The boost applies to eligible expenditure incurred between 7:30 pm AEDT on 29 March 2022 and 30 June 2023. The boost is for business expenses and depreciating assets and is capped at $100,000 of expenditure per income year. You can receive a maximum bonus deduction of $20,000 per income year.
Eligible expenditure may include, but is not limited to, business expenditure on:
digital enabling items – computer and telecommunications hardware and equipment, software, internet costs, systems and services that form and facilitate the use of computer networks
digital media and marketing – audio and visual content that can be created, accessed, stored or viewed on digital devices, including web page design
e-commerce – goods or services supporting digitally ordered or platform-enabled online transactions, portable payment devices, digital inventory management, subscriptions to cloud-based services, and advice on digital operations or digitising operations, such as advice about digital tools to support business continuity and growth
Temporary Skills and Training Boost Small businesses will be allowed an additional 20% tax deduction for external training courses delivered to employees by registered training providers. The boost applies to eligible expenditure incurred from 7:30 pm AEDT on 29 March 2022 until 30 June 2024. Click here for further details.
$20,000 Instant Asset Write-off (not yet law) On 9 May 2023, as part of the 2023–24 Budget, the Australian Government announced it will improve cash flow and reduce compliance for small businesses by temporarily increasing the instant asset write-off threshold to $20,000, from 1 July 2023 until 30 June 2024.
Increase to Super Guarantee The super guarantee rate has increased from 10.5% to 11% from 1 July 2023. The rate used will depend on when your employee is paid, not when the income is earned – therefore the new rate will need to be applied to any payments made on or after 1 July 2023.
Minimum Wages Increase from 1 July 2023 The national minimum wage has increased by 5.75% to $23.23 per hour or $882.80 per week based on a 38-hour week for a full-time employee. For more details, and to ensure you are meeting your employer obligations, please click here.
Company and Business Name Fees Increase ASIC has increased the annual company review fee as well as company and business name fees from 1 July 2023 in line with indexation. Please click here for further details.
NSW Payroll tax thresholds The payroll tax rate of 5.45% and the annual payroll tax threshold of $1.2 million have not changed for the 2023-24 financial year. If you are concerned whether your business should be registered for payroll tax purposes, please contact our office so we can assist you further.
No Change to Contribution Caps The concessional contribution cap is $27,500 and the non-concessional cap is $110,000 for the 2023-24 financial year.
Downsizer Contributions As of 1 January 2023, you're now eligible to make a downsizer contribution if you're 55. Previously, the eligibility age was 60 (and before that, 65). The downsizer contribution is a government initiative which lets you contribute up to $300,000 as an individual or $600,000 as a couple to your super from the proceeds of selling your property. You can do this even when the usual contribution rules mean you wouldn't normally be eligible to add to your super. To establish if you satisfy the eligibility criteria to make downsizer contributions, please click here.
Minimum Pension Drawdown The temporary 50% reduction in superannuation minimum drawdown rates ceased on 30 June 2023. To review your minimum drawdown rate for year ending 30 June 2024 (based on age on 1 July 2023), please click here.
Better Targeted Superannuation Concessions (not yet law) On 28 February 2023, the Australian Government announced from 1 July 2025 a 30% concessional tax rate will be applied to future earnings for superannuation balances above $3 million. This measure is not yet law.