Federal Budget 2023-24 Tax Changes

The key tax and superannuation changes announced on Tuesday, 9 May 2023 by Treasurer Jim Chalmers are:

1. Small business instant asset write-off: For 2023-24 businesses with an annual turnover of less than $10 million pa can fully expense depreciating assets that cost less than $20,000 each.
2. Build-to-rent properties: Eligible new build-to-rent projects benefits from a 4% per year capital works tax deduction (vs current 2.5%), and the withholding rate on eligible fund payments from managed investment trust investments is reduced to 15% (currently 30%).
3. Small Business Energy Incentive: Eligible assets or upgrades installed between 1^st July 2023 and 30^th June 2024 will receive an additional 20% deduction. This applies to businesses with annual turnover of less than $50 million pa.
4. Super account balances above $3 million: From 1^st July 2025 the earnings (based on an accrual basis), on a member’s super balance that exceeds $3 million will be taxed at 30% (versus the current 15%).
5. Employees SGC to be paid at same time wages paid: This applies from 1^st July 2026.