As tax laws and regulations are constantly evolving, it is essential to stay up to date with the latest information to ensure compliance and make informed financial decisions. In this blog post, we will be highlighting some of the recent updates from the ATO and their impact on individuals and businesses.
Update 1: Superannuation Changes
The ATO has implemented several changes related to superannuation. Firstly, the super guarantee rate has increased to 11.5% from 11% as of 1st July 2024. This means that employers need to calculate super contributions at the new rate for payments of salary and wages made after this date. Additionally, the concessional super contributions cap has been raised to $30,000 per year from $27,500, allowing individuals to contribute more before-tax amounts to their super without extra tax implications. The non-concessional super contributions cap has also increased to $120,000 per year from $110,000. These changes provide individuals with greater flexibility to boost their super savings through voluntary contributions. The ATO's Super Health Check offers a simple way for individuals to manage their super basics effectively.
Update 2: Record-Keeping Rules
Proper record-keeping is crucial for work-related expense claims. It is highlighted that written evidence, such as receipts, is necessary to support claims exceeding $300. The blog post outlines the three golden rules for work-related expense claims: the expense must be personally incurred and not reimbursed, directly related to income generation, and supported by records like receipts. The ATO's guide on keeping records for work-related expenses provides detailed information on the types of records required for various deductions, including car expenses, working from home deductions, travel expenses, and self-education expenses.
Update 3: Small Business Energy Incentive
The small business energy incentive introduced by the ATO aims to support businesses with an aggregated turnover of less than $50 million in improving energy efficiency. Eligible businesses can claim a 20% bonus deduction for the cost of eligible energy-efficient assets or improvements made between 1st July 2023 and 30th June 2024. The incentive allows for up to $100,000 of total expenditure, with a maximum bonus deduction of $20,000 per business. While businesses can claim both the ordinary deduction and the bonus deduction, certain assets and expenditure are not eligible for this incentive, including those using fossil fuels, generating electricity, capital works, and motor vehicles. It is advised to maintain accurate records to support claims and to check eligibility for the instant asset write-off in addition to the energy incentive.
These updates provide valuable information to individuals and businesses to navigate the recent changes implemented by the ATO effectively and make informed financial decisions.
