OUR BLOG
FIRSTLY, INDIVIDUALS.
The budget announcement regarding individual Tax Offsets did not allow any extension to the low and middle income tax offset (LMITO) beyond the 2021-2022 income year. The LIMTO has now ceased and has been fully replaced by the low income tax offset (LITO). The maximum amount of the LITO is $700. The LITO is withdrawn at a rate of 5 cents per dollar between taxable incomes of $37.500 and $45,000 and then at a rate of 1.5 cents per dollar between incomes of $45,000 and $66,667.
SECONDLY, SMALL BUSINESSES.
Small business, ie those with an aggregate turnover of less than $10 million, will be able to deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use between 1 July 2023 and 30 June 2024. the $20,000 threshold will apply on a per asset basis, so small business can instantly write off multiple assets.
Assets valued at $20,000 or more ( which cannot be immediatly deducted ) can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year thereafter.
