The ATO has now released its suite of 2023 Tax Time stationery and an overview of key changes for the year of which practitioners and taxpayers need to be aware before completing their tax returns over the next few months.
Tax return for individuals (supplementary section)
The $250 non-deductible self-education expense threshold has been removed from 1 July 2022. There is no longer a non-deductible category E for work-related self-education expenses in question D4.
The ATO’s fixed rate method for calculating additional expenses incurred while working from home has been revised from 1 July 2022. The rate for this year is 67 cents per work hour. The expenses covered and record keeping requirements have also been changed.
Taxpayers can also choose to use the actual costs method for calculating deductions. The temporary shortcut method is no longer available.
The low and middle income tax offset ended on 30 June 2022.
The low income tax offset is still available for taxpayers with a taxable income of $66,667 or less.
Company tax return instructions 2023
New items:
Items removed from the Calculation statement:
Note: interest on early payments has been automated from 1 July 2021 and there is no longer a requirement for taxpayers to complete this item — for all entity types
This measure is not yet law.
Legislation currently before Parliament proposes to introduce a temporary skills and training boost for small businesses with an aggregated annual turnover of less than $50 million. Eligible businesses can claim a bonus deduction equal to 20 per cent of qualifying expenditure incurred for the provision of external training courses to employees by eligible registered training providers. It applies to eligible expenditure incurred between 7.30 pm (AEDT) on 29 March 2022 and 30 June 2024. A bonus deduction for expenditure incurred in 2022 will be claimable in 2023.
For certainty, affected taxpayers may choose to hold off lodging their 2023 tax return until the legislation has been enacted or the proposal is scrapped.
Alternatively, taxpayers may lodge their return before the measure is enacted — without claiming the bonus deduction — and subsequently amend the return to claim the bonus deduction if and when the boost becomes law.
Note: the small business skills and training boost is not restricted to companies.
This measure is not yet law.
Legislation currently before Parliament proposes to introduce a temporary technology investment boost for small businesses with an aggregated annual turnover of less than $50 million. Eligible businesses can claim a bonus deduction equal to 20 per cent of qualifying expenditure incurred for the purposes of their digital operations or digitising their operations. It applies to eligible expenditure of up to $100,000 per income year incurred from 7:30 pm (AEDT) on 29 March 2022 until 30 June 2023. A bonus deduction for expenditure incurred in 2022 will be claimable in 2023.
For certainty, affected taxpayers may choose to hold off lodging their 2023 tax return until the legislation has been enacted or the proposal is scrapped.
Alternatively, taxpayers may lodge their return before the measure is enacted — without claiming the bonus deduction — and subsequently amend the return to claim the bonus deduction if and when the boost becomes law.
Note: the technology investment boost is not restricted to companies.
This measure is not yet law.
Legislation currently before Parliament proposes to add distributions funded by capital raising to the list of distributions that are unfrankable, for distributions made on or after 15 September 2022.
This measure is not yet law.
Legislation currently before Parliament aligns the treatment for shareholders that participate in off-market share buy-backs undertaken by listed public companies with that currently applied to on-market share buy-backs. It also amends the law in respect of selective share cancellations for shareholders to ensure alignment of tax treatment across capital management activities for listed public companies.
The result is that no part of the purchase price in respect of an off-market share buy-back undertaken by a listed public company is taken to be a dividend. Furthermore, a distribution by a listed public company that is consideration for the cancellation of a membership interest in itself, as part of a selective reduction of capital, is unfrankable.
A company that undertakes an off-market buy-back or selective share cancellation after the measure takes effect may be required to debit the balance of its franking account.
The amendment applies to buy-backs undertaken by listed public companies that are first announced to the market after 7:30 pm, by legal time in the ACT, on 25 October 2022, and to selective cancellations undertaken by listed public companies that are first announced to the market on or after 16 February 2023.
For listed public companies, any amounts entered at Item J — Franked dividends paid or item K — Unfranked dividends paid may be impacted by this bill when it is enacted.
This measure is not yet law.
Legislation before Parliament proposes to introduce the Digital Games Tax Offset, which is a refundable tax offset for eligible expenditure incurred in developing digital games in Australia. The amount of the offset is 30 per cent of an eligible company’s total qualifying expenditure. The maximum amount of the offset that can be claimed is $20 million in an income year.
Trust tax return instructions 2023
Attribution managed investment trust (AMIT) tax return 2023 — sample only (must be lodged electronically)
Attribution managed investment trust (AMIT) tax return instructions 2023
The Corporate Collective Investment Vehicle Framework and Other Measures Act 2022 establishes the regulatory and tax frameworks for corporate collective investment vehicles (CCIVs).
The CCIV tax framework leverages the existing trust taxation framework and the existing attribution flow-through regime (that is, the Attribution managed investment trust (AMIT) regime), rather than by creating a new bespoke tax regime.
A CCIV sub-fund trust must lodge either an Attribution CCIV sub-trust tax return, a Trust tax return or a Company tax return — depending on the criteria which it satisfies.
Item 7 — Credit for interest on early payments — amount of interest will be removed from the trust tax return for the 2022–23 income year onwards.
Credit for interest on early payments — amount of interest was removed from the AMIT tax return for the 2022–23 financial year onwards.
Partnership tax return instructions 2023
When the small business skills and training boost is enacted, complete item 5 — Expense reconciliation adjustments (expense subtractions) and item 52 Small business boosts — A Small business skills and training boost to claim the bonus deduction.
When the small business technology investment boost is enacted, complete item 5 — expense reconciliation adjustments (expense subtractions) and item 52 Small business boosts — B Small business technology investment boost to claim the bonus deduction.
Fund income tax return instructions 2023
There is no requirement to complete Section D — H1 — Credit for interest on early payments — amount of interest. It was removed from the Fund income tax return for the 2022–23 financial year onwards.
Eligible rollover funds (ERFs) no longer exist from 31 January 2022. All ERFs should have closed by 31 January 2022 and ERFs were required to transfer remaining accounts to the ATO.
From 1 January 2023, the age at which an eligible individual may choose to make a downsizer contribution to their superannuation fund is 55 years or older. This further reduces the downsizer eligibility age which changed from 65 to 60 from 1 July 2022. Prior to 1 July 2022, the eligibility age was 65 years and over.
For other relevant 2023 forms and schedules, refer to the ATO’s Forms and instructions page.
Join us at the beginning of each month as we review the current tax landscape. Our monthly Online Tax Updates and Public Sessions are excellent and cost effective options to stay on top of your CPD requirements. We present these monthly online, and also offer face-to-face Public Sessions at 17 locations across Australia.
Join us online
Upcoming webinars >
Register for a workshop
Upcoming workshops by state >
Outsource your L&DWe can also present tax updates or specialty topics at your firm or through a private online session, with content tailored to your client base. Call our BDM Caitlin Bowditch at 0413 955 686 to have a chat about your specific needs and how we can assist.
Learn more about in-house training >
Our mission is to provide flexible, practical and modern tax training across Australia – you can view all of our services by clicking here.
Join thousands of savvy Australian tax professionals and get our weekly newsletter.