2023 TAX UPDATES

Payday super to be introduced

As part of the 2023 Federal Budget, the government has announced the introduction of “payday super”.

Aiming to provide better retirement outcomes for employees, from 1 July 2026, employers will be required to pay their employees super at the same time as their salary and wages.

This measure will also increase transparency for employees as well as the ATO for any unpaid superannuation entitlements.

Lower paid, casual and insecure workers will benefit the most by this measure are they are more likely to miss out when super is paid quarterly or less frequently.

Payday super to be introduced

As part of the 2023 Federal Budget, the government has announced the introduction of “payday super”.

Aiming to provide better retirement outcomes for employees, from 1 July 2026, employers will be required to pay their employees super at the same time as their salary and wages.

This measure will also increase transparency for employees as well as the ATO for any unpaid superannuation entitlements.

Lower paid, casual and insecure workers will benefit the most by this measure are they are more likely to miss out when super is paid quarterly or less frequently.

Small business energy incentive

Businesses with an aggregated turnover of less than $50 million will be entitled to a 20% deduction for expenditure that supports electrification and more efficient use of energy.

This bonus deduction will be available for expenditure incurred from 1 July 2023 until 30 June 2024.

The additional deduction will be available for eligible expenditure of up to $100,000 and is therefore capped at $20,000 for each business.

The temporary measure will apply to eligible assets or upgrades first used or installed ready for use between 1 July 2023 and 30 June 2024.

Small business instant asset write-off to be reintroduced

With the temporary full expensing (TFE) incentive due to end on 30 June 2023, the federal government has announced the reintroduction of the small business instant asset write-off.

This measure will provide businesses with cash flow support and reduce compliance costs. Assets that cost $20,000 or less may be eligible for this incentive.

From 1 July 2023, small businesses with aggregated annual turnover of less than $10 million will be able to immediately deduct the full cost of eligible assets.

Eligible assets must be first used or installed ready for use between 1 July 2023 and 30 June 2024, and the write-off applies on a per asset basis.