2022-2023 Federal Budget: Tax Announcements

Last month, the 2022-2023 October Federal Budget was handed down with several announcements involving tax.

These tax-related Budget measures included;

List of Services

Intangible Assets Depreciation
There was a reversal of the previously announced option to self-assess the effective life for certain intangible assets (for example, intellectual property and in-house software), and instead, will continue to be set by statute.

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Digital Currencies will not be classed a foreign currency
Legislation will be introduced to clarify that digital currencies (such as Bitcoin) continue to be excluded from the Australian income tax treatment of foreign currency.

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Denial of deductions for payments by "Significant Global Entities" for intangibles.
An anti-avoidance rule will be introduced to prevent significant global entities (entities with global revenue of at least $1 billion) from claiming tax deductions for payments made directly or indirectly to related parties concerning intangibles held in low- or no-tax jurisdictions.

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Covid Grants treated as Nane
The latest Budget lists certain State and Territory COVID-19 grant programs eligible for nonassessable, non-exempt treatment.

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Penalty Unit Increase
The amount of the Commonwealth penalty unit will increase from $222 to $275 from 1 January 2023. A penalty unit is what the fines the ATO issues are comprised of. For example, a failure to lodge penalty for small entities is calculated at the rate of one penalty unit
or each period of 28 days (or part thereof) that the return or statement is overdue, up to a maximum of 5 penalty units.

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Additional Funding to the Tax Avoidance taskforce
The Taskforce will continue to be focused on compliance activities that target multinationals, large public and private groups, trusts and highwealth individuals. The government has announced a further $200 million in funding per year for the next three years to extend the Taskforce and, in 2025-26, there is to be a significant increase of $534.5 million for that year.

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Farewell Deryn

By Jodie Cunningham • September 8, 2023

Deryn worked for Logan & Hall for over 32 years. She was originally employed in an administration role which she continued to do until she left in 1984 to start her family having children Jane and then David. Deryn returned to Logan & Hall in around 1990 as the Office Manager where she also completed some accounting courses. Deryn eventually went onto managing all the office Self-Managed Super Funds including preparation and lodgement of these returns. During her time at Logan & Hall, Deryn built strong relationships with her clients and will be missed by them we’re sure. Outside of work, Deryn is also well known in the Swan Hill Community with her involvement with the Swan Hill Show and Swan Hill Women in Racing. Deryn could also be found on the golf course. You may have even shared a glass or two of bubbles with Deryn along the way. We treasure the many years we have had with Deryn both at work and personally. She will be missed around the workplace, but we will be keeping in touch. Deep will now be managing the Self-Managed Super Funds and can take care of any queries you may have.

2023-24 Federal Budget Announcements

By Jodie Cunningham • June 2, 2023

The Federal Budget was handed down on the 9 May, 2023, outlining a number of changes that impact businesses, tax & superannuation.

Offsetting Business Losses in the Current Year

By Jodie Cunningham • April 5, 2023

A non-commercial business loss is a loss you incur, either as a sole trader or in partnership, from a business activity unrelated to you primary source of income. This type of business activity could be a hobby or lifestyle benefit.