As another financial year comes to a close, we look forward to the 2024 FY and summarise some important changes coming into affect from 1 July 2023.
The super guarantee rate is increasing
From 1 July 2023, the super guarantee (SG) rate will increase from 10.5% to 11% for all eligible employees. Superannuation rates have been increasing each year by 0.5%, since 1 July 2021.
Employers must make minimum contributions of 11% for wages paid on or after 1 July 2023. This means, if an employee’s pay period spans across 2 financial years, the 11% will apply only if those wages are physically paid on or after 1 July 2023. If those wages are paid before 1 July 2023, the superannuation will remain at 10.5%.
Example: Billy is paid fortnightly and the pay run period ends on 7th July 2023.
His employer pays him for this pay period on 30th June. Super will be at 10.5% for the whole pay period.
If the employer decides to pay on 4th July 2023, super will be calculated at 11% for the whole pay period.
New fixed rate method for claiming work from home expenses
The fixed rate method for calculating working from home expenses has been revised, and is available for taxpayers to use from 1 July 2023.
The revised method sees a rate of 67c per hour able to be claimed, for certain expenses which are difficult to apportion (think internet & electricity). While the rate per hour has increased, the running costs it includes has changed and there are more record keeping requirements. Taxpayers must now keep a record for the entire income year of the actual number of hours worked from home.
However, a transitional approach can still be applied for the period from 1 July 2022 to 28 February 2023, where the ATO will accept a record for a representative 4-week period for the total number of hours worked.
Please contact us should you require further information regarding these changes.
Fringe Benefits exemption ceasing for plug-in hybrid electric vehicles
From 1 April 2025, a plug-in hybrid electric vehicle will not be considered a zero or low emissions vehicle under FBT law. However, the exemption will still apply if the vehicle was exempt before 1 April 2025 and there is a financially binding commitment to continue providing private use of the vehicle from that date.
Should you require more detailed information or specific advice, please contact us on 07 5532 4555.