Federal Budget 2023-24

Looking at specific sectors, investment in dwelling construction is expected to contract by 2-3% for the coming three years. Retailers are on notice that household consumption is set to level off with minimal growth in the period 2023-25, and investment by business will also slow considerably over the same period.

Two minor initiatives are offered in this year’s Budget for smaller businesses as initiatives to support small-scale capital investment. The first of these is a temporary increase of the instant asset write-off threshold to $20,000, from 1 July 2023 until 30 June 2024, limited to businesses with aggregated annual turnover of less than $10million. The $20,000 threshold will apply on a per asset basis, so eligible businesses can instantly write off multiple assets.

The Government has announced additional measures to encourage small businesses to invest in certain assets and to help with cash flow.

The Government will introduce a global minimum tax and domestic minimum tax to ensure large multinationals pay an effective minimum level of tax in each jurisdiction in which they operate.

From 1 July 2026, employers will be required to pay employees’ superannuation guarantee entitlements more regularly and plug-in hybrid electric vehicles (PHEV) will see a change in FBT eligibility.

The Government has announced an expansion of the scope of the income tax general anti-avoidance rule and provided additional cash injection over the next four years for the ATO to continue its focus on compliance activities.