The 2023/24 Federal Budget includes several measures aimed at personal income tax, small businesses, superannuation, tax integrity, and other areas.

1. Personal income tax measures:

• The Medicare levy low-income thresholds will be increased to provide cost-of-living relief for low-income individuals.
• Lump sum payments in arrears will be exempted from the Medicare levy to ensure low-income taxpayers are not burdened with higher payments.

2. Small business measures:

• The instant asset write-off threshold will be temporarily increased to $20,000, allowing small businesses to immediately deduct the full cost of eligible assets.
• The Small Business Energy Incentive will enable businesses to deduct an additional 20% of the cost of eligible assets promoting electrification and energy efficiency.
• A lodgment penalty amnesty program aims to encourage small businesses to re-engage with the tax system.
• Quarterly tax instalments will be halved to provide cash flow support.

3. Superannuation measures:

• The non-arm's length income provisions will be amended to limit taxable income for self-managed superannuation funds and exempt large APRA regulated funds.
• The frequency of superannuation guarantee payments will increase to align with salary and wages payments.
• Earnings on superannuation balances above $3 million will be taxed at 30%.

4. Tax integrity measures:

• The general anti-avoidance rule will be expanded to address tax reduction schemes and income tax benefits.
• Compliance programs for personal income tax, engagement with taxpayers, and superannuation guarantee underpayment will be extended and funded.
• The Serious Financial Crime Taskforce and Serious Organised Crime program will be merged and funded for further disruption of criminal activities.

5. Other budget measures:

• The capital works tax deduction for Build-To-Rent Developments will be accelerated, and the withholding tax rate on eligible fund payments reduced.
• The eligibility for FBT exemption for plug-in hybrid electric cars will be sunsetted.
• The measure providing pensioners with a Work Bonus income bank credit will be extended.

To read more, download a budget summary provided by the NTAA below: