My Tax ATO 2023

 

• Cost of Living

The goal of two new measures is to lower the cost of living for people with low to middle incomes (LMI): Cost of Living Tax Offset: :The government will increase the LMI tax offset up to $1,500 –  a $450 increase, as an improved version of the initiative from last year.This modification will be beneficial to all recipients, with the exception of those who do not require the entire offset to eliminate their tax liability. Because of the LMITO’s current features, individuals with incomes of at least $126,000 will not receive the $420 tax offset. Cost of Living Payment: Age pension, parenting payments, Jobseeker payments, Youth Allowance, and Disability Support recipients will each receive $250 as economic support. This support payment is exempt from taxes and does not need to be declared as income support in the tax return. These measures are a welcome relief to vulnerable Australians, albeit a temporary fix.

• Extension of Lower Superannuation Minimum Drawdown Rules

Up until June 30, 2023, self-funded retirees can still choose to reduce their minimum pension drawdown by 50%.As part of the country’s response to COVID’s impact on investment markets, this measure was implemented in 2020.The objective is to assist with pensioning individuals pull out less from their retirement investment funds so they can leave a more critical sum for what’s in store.

• Paid Parental Leave

Enhancing the Women’s Economic Security Package, which was introduced in the 2021-22 Budget, the Federal Government announced the Paid Parental Leave Scheme for the 2022-23 Budget. This scheme unites Dad and Partner Pay into one Parental Leave scheme of up to 20 weeks. It’s fully flexible, too, allowing the benefit to be shared between working parents. The parental leave changes will cost the Government more than $346 million over five years. It will help families take leave whenever they need to within two years of the birth or adoption of a child. But don’t rush just yet. The measure will not be in effect until 1 March 2023.

• Housing Affordability

The First Home Guarantee and Family Home Guarantee Schemes are better than ever. The Government provides more bolstered support for first home buyers and single parents. The schemes will help people break into the property market with lower deposits: 5% for First Home Guarantee and 2% for Family Home Guarantee. The Home Guarantee Scheme was first introduced in 2021 and provided 10,000 mortgage loans for eligible persons. This year, the Government plans to deliver more financial assistance, extending the reach of the scheme to 35,000 locations for first home buyers and 5,000 for single parents. Additional 10,000 places will be allocated to people in regional areas, which the new Regional Home Guarantee will cover.

• Other Measures:
  • A range of measures focuses on flood relief with more than $6 billion in budget to help communities affected by floods.
  • The Government is reinforcing its programs to prevent or even end violence against children and women with a $1.3 billion budget.
  • Combating suicide will be of national importance. The government plans to spend $2.3 billion on mental health and suicide prevention programs.

Small business FBT exemption for electric vehicles Electric vehicle taxes will be reduced by the government. The measure will exempt battery, hydrogen fuel cell, and plug-in hybrid electric vehicles from fringe benefits tax and import tariffs starting on July 1, 2022, if their first retail price is lower than the luxury car tax threshold for fuel-efficient vehicles. Before July 1, 2022, the vehicle cannot have been held or used. An employee’s amount of reportable fringe benefits must include exempt electric car fringe benefits. Depreciation Announcement has been made in the 2021-22 Budget that Government will not proceed with the measure to allow taxpayers to self-assess the effective life of intangible depreciating assets. Reversing this decision will maintain the status quo – effective lives of intangible depreciating assets will continue to be set by statute.