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Here’s our summary of the business and tax related things that are in Parliments pipeline at the start of 2023.

Bonus deductions for small and medium business

 Legislation presently before Parliament will provide small and medium businesses (those with aggregated annual turnover of less than $50 million) with bonus deductions equal to 20% of eligible expenditure incurred on external training or technology. The expenditure must already be deductible under the taxation law.

Training – the 20% boost is available for expenditure incurred on training employees, either in-person in Australia or online, between 7:30pm on 29 March 2022 and 30 June 2024. The training must be conducted by a third party registered training provider, which must not be an associate of the business.

Technology – the 20% boost is available for expenditure incurred between 7:30pm on 29 March 2022 and 30 June 2023 on the business’ digital operations or on digitising its operations. If the expenditure is on a depreciating asset, the asset must be first used or installed ready for use by 30 June 2023. The technology bonus deduction is capped at $20,000 per financial year.

Parliament is scheduled to resume on Monday 6 February 2023 so these measures could be passed by the end of February 2023.

Tip! Talk to your tax adviser if you think your business might qualify for either of the bonus deductions.


Reducing FBT compliance costs

Another measure being considered by Parliament should reduce employers’ FBT compliance costs.

The new rules will allow employers to rely on adequate alternative records (as determined by the ATO) which contain the information required for FBT record keeping purposes, instead of keeping and retaining the current designated statutory evidentiary documents such as prescribed employee declarations.

The ATO has already released 2 draft determinations specifying alternative records in certain circumstances where a fringe benefit consists of the reimbursement of car expenses or where a travel diary is presently required.

Tip! Talk to your tax adviser about your FBT record-keeping obligations. They can also advise you if you should benefit from these new measures.

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