ATO has introduced major changes in 2023.
Some of the changes are as follows:
Export and trade
The Government will commit $204.8 million over a 5 year period from 2022 to 2023 to support industry to improve innovation and foster sustainable and productive growth in Australian timber production.
Income deferment or acceleration
Income is taxed in the year it is received. Depending on your situation, you may be able to choose to pay higher taxes this year or next year. Why pay now if you can pay later? In order to lower your tax burden for this year, defer any income you can to next year. For example, if you operate on a cash basis, you can send invoices in January 2023. Money you get then won’t be taxable until 2024
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Tax free Super Component
The taxable component includes everything else, i.e. all deductible contributions plus accrual accrued to the fund, so this component changes daily. Unfortunately, many super fund statements don’t show these numbers, so you’ll have to call and ask for that breakdown specifically.
You cannot take either of the two components individually, only in the ratio in which they are present.
Eligibility for downsizer scheme contributions
Eligibility for contributions to the Downsizer program is extended to persons between the ages of 55 and 59. This was part of a series of measures previously announced to encourage more Australians to downsize sooner. So far, the measure was limited to people over 60 years of age.
The measure, which is currently being legislated, is scheduled to come into force in the first quarter of 2023.
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Making child care more affordable for 1.26 million families
For four years starting in 2022–2023, the government will invest $4.7 billion to lower the cost of early childhood education and care for Australian families. 96% of families with children in child care will benefit from the government’s measures, and no family will suffer as a result.
Child Care Subsidy rates will rise by up to 90% starting in July 2023 for qualified families making less than $530,000. For any additional children in care who are 5 years old or younger, families will continue to receive the higher subsidy rates that are now available, up to 95%.
