1. Small business boost
If you’re a small business who invested in technology or digital operations between 29 March 2022 and 30 June 2023, you are eligible to receive a bonus 20 per cent tax deduction for those items.
The boosts are available for small businesses investing in digital operations, or skills and training – for example, new equipment like technology, cloud-computing, e-invoicing or cyber security.
Any item you purchase must be first used or installed ready for use by 30 June 2023 in order to be eligible
Likewise, the small business skills and training boost allows businesses to claim an additional 20 per cent tax deduction to train new and existing employees between 29 March 2022 and 30 June 2024.
The training must be through a registered external training provider in Australia.
2. Temporary full expensing
Temporary full expensing (TFE), which supports small businesses making capital purchases by allowing an immediate deduction for assets rather than claiming the depreciation over a number of years, ends 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 this year’s tax returns.
However, 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 under TFE in small business tax returns this year.
3. Deduction rate changes
Both of the running a business from home deductions and car expense deductions have changed for this tax time.
The new cents per kilometre rate is 78 cents for 2022-23, but remember to keep written evidence to show how you worked out the work-related kilometres.
This method is available to sole traders and partnerships.
The car limit has increased to $64,741 for the 2022-23 income year.
