2023-24 Federal Budget Announcement

Click here to read all the information related to the following topics (PDF).

Highlights

• 2023–24 Federal Budget Highlights
• Business
• Individuals
• Multinationals
• Superannuation
• Tax administration
• GST and other indirect taxes

Business

• Small business depreciation — instant asset write-off threshold of $20,000 for 2023–24
• Increased deductions for small and medium business expenditure on electrification and energy efficiency
• FBT exemption for eligible plug-in hybrid electric cars to end
• Accelerated deductions and reduced MIT withholding tax for new build-to-rent projects
• Clean building MIT withholding tax concession to be extended
• Franked distributions funded by capital raisings — start date postponed
• Patent box measures not to proceed
• Delay of biodiversity stewardship certificates
• Increased Location Offset incentive to boost film industry
• Deductible gift recipients list to be updated

Individuals

• Increased rate for income support payments
• Expanded eligibility for higher Jobseeker Payment rate
• Workforce participation incentive measures extended
• Improved support for single parents
• Increasing the supply of social and affordable housing and making it easier to buy a home
• Increased support for Commonwealth rent assistance recipients
• Medicare low-income thresholds for 2022–23
• Exempting lump sum payments in arrears from the Medicare levy

Multinationals

• Australia will implement BEPS Pillar 2 from 1 January 2024
• Scope of Pt IVA general anti-avoidance rules expanded
• Changes to Petroleum Resource Rent Tax (PRRT)
• “Exploration for petroleum” meaning clarified; timing of depreciation
• General insurers to continue use of audited financial information for tax returns

Superannuation

• Reducing tax concessions for superannuation balances exceeding $3 million
• Employers to be required to pay super guarantee on payday
• Non-arm's length income (NALI) amendments

Tax Administration

• Lowering the tax-related administrative burden for small and medium businesses
• Reduction in GDP adjustment factor for pay as you go and GST instalments
• Funding to improve the administration of student loans
• Additional funding to address growth of businesses’ tax and superannuation liabilities
• Extension of personal income tax compliance program

GST and other Indirect Tax

• Continued crackdown on GST compliance
• Fuel tax credits — heavy vehicle road user charge increase
• Indirect Tax Concession Scheme: diplomatic and consular concessions extended
• Streamlining of excise administration measures start date amended
• Tobacco excise measures to improve health outcomes and align the treatment of stick and non-stick tobacco tax