2024 Tax Planning Strategies
Reviewing and optimising your tax situation is essential as the end of the financial year approaches 30 June 2024. Effective tax planning can enhance your financial outcomes by reducing tax liability and strengthening your investment portfolio. Here’s a comprehensive guide to help you understand various tax planning strategies you should consider.
Electric vehicle home charging expenses
If you own or lease an electric car used for work and use the logbook method to calculate deductible running costs, determining the cost of charging the vehicle at home can be complex.
The ATO guidelines aim to simplify this process. If you meet certain criteria, you can opt to calculate electricity costs using the EV home charging rate, initially set at 4.20 cents per kilometre.
Payroll tax updates for medical practices
Given the high risk of payroll tax audits across the medical and allied health industry, organisations must understand and adapt to the changing payroll tax landscape.
Changes to personal tax rates announced by the federal government
The federal government has announced an overhaul of the previous Coalition government stage 3 tax cuts and introduced various changes in the personal tax rates that apply from 2024–25 income year and onwards. The new tax changes focus on low and middle-income earners to help with cost-of-living pressures.
Review of independent contractor agreements
Recently, the ATO has released further guidance in relation to making the correct distinction between an employee and an independent contractor. It is essential that we review the arrangements that you have in place with independent contractors, as there are several differences in reporting obligations and whether additional amounts need to be withheld from a payment to a worker by you.
Payroll tax position for businesses operating medical practices clarified (Qld)
The Queensland Revenue Office has clarified the payroll tax position for businesses operating medical practices in Queensland in an updated public ruling.
Public Ruling PTAQ000.6.2 confirms that under normal business arrangements, patient fees, including the Medicare benefit and any out-of-pocket expenses paid directly by a patient to a general practitioner for their services, will not be subject to payroll tax.
Small business instant asset write-off threshold to increase
As part of the 2023–24 Federal Budget, an increase in the small business instant asset write-off threshold was announced to support small businesses. A bill proposing to enact this measure has now been introduced in the Parliament.
With the temporary full expensing (TFE) incentive available to small and medium businesses with a turnover of less than $5 billion, ending on 30 June 2023, this measure was announced to relieve small businesses from high inflation and other market volatility pressures.
Large superannuation balances will have tax concession removed
The federal government has announced its intention to change the tax concessional status for very large superannuation accounts. The tax concessional status will change for individuals with over $3 million in their total superannuation balance (TSB).
Work from home deductions 2023
The Australian Taxation Office (ATO) has issued new guidelines to help you in making a claim for running expenses using the fixed cost method, while working from home from 1 July 2022.
Small business skills and training boost
A bonus tax deduction of 20% is available for external training costs for staff. It is available for expenses you have incurred between 29 March 2022 and 30 June 2024. However, any bonus deductions for expenses incurred before 30 June 2022 may be delayed by a year in being refunded to your business.