Top tax changes to be aware of in 23-24

Individuals

• The maximum Child Care Subsidy amount has been increased from 85% to 90% for families for the first child in care and the Child Care Subsidy rate for all families earning less than $530,000 in household income has been increased from 10 July 2023
   
• The Paid Parental Leave scheme has been amended from 1 July 2023 so that either parent is able to claim the payment and both birth parents and non-birth parents are allowed to receive the payment if they meet the eligibility criteria
   
• Extension of parental leave pay from 18 weeks to 20 weeks from 1 July 2023, with 2 weeks reserved on a “use it or lose it” basis for each claimant
   
• The indexed amount of the Dependant (invalid and Carer) Tax Offset for the 2023-24 income year is $3,152
   
• The low income tax offset for the 2023/24 income year is $700

Companies

• For private companies with a regular 30 June balance date, the Div 7A benchmark interest rate for 2023–24 is 8.27%
   
• A Bill has been introduced that proposes amendments to the thin capitalisation rules for income years commencing from 1 July 2023
   
• A Bill has been introduced containing measures to enhance multinational tax transparency by amending the Corporations Act 2001 to add new rules on the disclosure of information about subsidiaries by Australian public companies in their annual financial reports for financial years that commence on or after 1 July 2023
   
• Exposure draft legislation has been released to prevent significant global entities from claiming tax deductions for payments relating to intangibles connected with low corporate tax jurisdictions. Amendments will be made to better target the measure which will apply to payments made from 1 July 2023 (2023–24 MYEFO)

Superannuation

• An alternative method for calculating the tax free and taxable components of superannuation benefits for recipients of defence force and military invalidity benefits is prescribed in the tax regulations from 1 July 2023
   
• From 1 July 2023, SMSFs have to report transfer balance events within 28 days after the end of the quarter in which the event occurred, with certain exceptions
   
• The SG charge percentage (commonly called the SG rate) has increased from 10.5% to 11% from 1 July 2023
   
• An employee’s entitlement to superannuation contributions is a National Employment Standard in the Fair Work Act 2009 from 1 January 2024

Payroll Tax

• NSW: payroll tax audits in relation to general practitioners and their practices are paused for 12 months from 4 September 2023
   
• NSW: from 4 September 2023, an entity and a phoenix corporation will be grouped if sufficiently influenced by the same third party

Stamp duty

• NSW: the rules aggregating dutiable transactions that form one arrangement and treat them as a single dutiable transaction were amended with effect from 4 September 2023. Previously, they applied only to relevant transactions occurring within a 12-month period — they now apply without that time limit
   
• NSW: from 1 July 2023, no duty will be payable by first home buyers where the purchase amount of the property is less than $800,000 and reduced duty will be payable where the purchase amount is between $800,000 and $1,000,000
   
• NSW: the ability to elect between duty and an annual property tax was allowed for certain first home buyers, with effect from 16 January 2023 until 1 July 2023 where the property had a value of $1.5 million or less. For contracts made on and from 1 July 2023, the ability to make that choice ceased. Duty will be payable, subject to available concessions and exemption.
   
• NSW: from 1 February 2024, where a landholder is a private unit trust scheme, landholder duty will apply on acquisition of an interest of 20% or more. The former 50% acquisition threshold will remain for a new category of “wholesale unit trust”

Land Tax

• NSW: from 1 February 2024 an owner occupying land as a principal place of residence will need at least 25% ownership interest in the land for it to be exempt from land tax
   
• NSW: from 1 July 2023 first home buyers ceased to have the option to elect to pay an annual property tax instead of stamp duty
   
• Vic: from 1 January 2024 a contract of sale with a purchase price of $10 million or less cannot include provision for land tax adjustment between vendor and purchaser
   
• Qld: from 1 July 2023 land tax and foreign surcharge concessions apply to residential property developments which include affordable housing
   
• SA: a 50% reduction in land tax applies to eligible build-to-rent projects where construction commences on or after 1 July 2023
   
• WA: measures proposed in a Bill will provide, from 1 July 2023, a 50% land tax reduction for certain new build-to-rent developments

Other Changes

• A Bill has been introduced to change the instant asset write-off threshold to $20,000 from 1 July 2023 to 30 June 2024
   
• The cents per kilometre rate for claiming work-related car expenses is 85 cents from 1 July 2023
   
• The location offset rebate rate for films is proposed to be increased from 16.5% to 30% of eligible expenditure, to apply from 1 July 2023 (2023–24 Budget)
   
• The GDP adjustment factor for 2023–24 is 6% The taxable payments reporting system has been extended to cover sharing economy online platforms from 1 July 2023 (ride sharing and accommodation) and 1 July 2024 (for other transactions)
   
• The luxury car tax threshold for 2023–24 is $76,950 and the fuel-efficient car limit for 2023–24 is $89,332
   
• The rate of the heavy vehicle road user charge increased to 28.80 cents per litre of taxable fuel from 1 July 2023

In some cases, implementation of these changes may be dependent on the future passage of the necessary legislation.

How we can help

If you have any queries about any of the above information, contact your local TaxAssist Accountant for a free initial consultation.

Call 08 6245 7506 or make an enquiry here.

Date published 21 Mar 2024 | Last updated 25 Mar 2024

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.