3 things you should know coming into Tax time

As tax time approaches, all the information out there can seem a little overwhelming! We’ve put together our top 3 things you should know about as the end of the financial year approaches, to help you get the most out of your tax deductions.

  1. Catch-up Super

Otherwise known as “Carry forward Super”, this little tip can help you maximise your tax-deductible Super contributions. From FY 2019–20, carry forward rules allow you to make extra concessional contributions – above the general concessional contributions cap – without having to pay extra tax.

The carry forward arrangements involve accessing unused concessional cap amounts from previous years. An unused cap amount occurs when the concessional contributions you made in a financial year were less than your general concessional contributions cap.

To use your unused cap amounts you need to meet 2 conditions:

  • your total super balance at the end of 30 June of the previous financial year is less than $500,000
  • you made concessional contributions in the financial year that exceeded your general concessional contributions cap.

Find out more about Catch up Super here.

  1. Instant asset write off

There are currently three temporary tax depreciation incentives available to eligible businesses:

  • Temporary full expensing
  • Increased instant asset write-off
  • Backing business investment

Regarding instant asset write-off, the Government have extended the new scheme introduced in 2020 until 30 June 2023. This allows eligible businesses the ability to instantly write off the cost of new items, rather than using the standard depreciation rule.

Eligibility criteria includes:

  • Annual turnover or total income less than $5 billion
  • Asset must be purchased within the eligible date range
  • The cost of the asset must be less than $150,000

Find out more about the instant asset write off scheme here.

  1. Digital Technologies tax deduction

On 29 March 2022, as part of the 2022–23 Budget, the Australian Government announced that it will support small business through the following new measures.

Small Business Technology Investment Boost

Eligible Small businesses will be able to deduct an additional 20% of the cost incurred on business expenses and depreciating assets that support their digital adoption, such as;

  • Portable payment devices
  • Cyber security systems
  • Subscriptions to cloud based services.

Small Business Skills and Training Boost

Eligible Small businesses will be able to deduct an additional 20% of the expenditure incurred on eligible training courses provided to employees.

Timing

This measure will apply to expenditure incurred in the period commencing 29 March 2022 until 30 June 2023.

For eligible expenditure incurred between 29 March 2022 until 30 June 2022:

  • claim the expenditure as usual in your 2021–22 tax return, and
  • claim the additional 20% bonus deduction for this period in your 2022–23 tax return.

Find out more about the digital technologies tax deduction options here.


The team at Sciacca’s are here to help! It’s our job to educate our clients and help them get the most out of their tax returns. Get in touch if you have any questions or would like to book a consultation with one of our team.

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