Find out what's new or any changes in legislation that need to be taken into consideration when lodging the tax return.
Small business skills and training boost
The Treasury Laws Amendment (2022 Measures No. 4) Act 2023 provided for a temporary skills and training boost for small businesses in the form of a bonus deduction. Small businesses (with an aggregated annual turnover of less than $50 million) are able to claim the bonus deduction as an additional 20% deduction, on top of their ordinary deduction, for expenditure incurred for the provision of eligible external training courses to employees by eligible registered training providers in Australia.
It applies to eligible expenditure incurred from 7:30 pm (AEDT) on 29 March 2022 until 30 June 2024. Special rules provide for the income year in which the bonus deduction can be claimed.
Small business technology investment boost
The Treasury Laws Amendment (2022 Measures No. 4) Act 2023 (Act No. 29 of 2023) provided for a temporary technology investment boost for small businesses in the form of a bonus deduction. Small businesses (with an aggregated annual turnover of less than $50 million) are able to claim the bonus deduction as an additional 20% deduction, on top of their ordinary deduction, for eligible expenditure incurred and depreciating assets acquired, for the purposes of their digital operations or digitising their operations. The maximum additional deduction is $20,000 per income year.
It applies to eligible expenditure of up to $100,000 per income year incurred from 7:30 pm (AEDT) on 29 March 2022 until 30 June 2023. Special rules also apply if claiming the bonus deduction for eligible expenditure on a depreciating asset.
Australian carbon credit units – primary producers
The Treasury Laws Amendment (2023 Measures No. 2) Act 2023External Link allows eligible individual primary producers to treat certain income they receive from the sale of Australian Carbon Credit Units that they start to hold on or after 1 July 2022 , as primary production income for the purposes of the farm management deposit scheme and tax averaging arrangements.
In addition, eligible individual primary producers who start to hold registered Australian Carbon Credit Units on or after 1 July 2022 as a result of their carbon abatement activities may in some circumstances only be taxed on the disposal of those units, and do not have to account for their change in value at the end of each income year they are held.
Partners in a partnership that carries on a business of primary production are only eligible for these concessions for their share of partnership income, if all the partners are individuals..
For partnerships carrying on a business of primary production, where all the partners are eligible individuals, include:
- Income from the disposal of eligible Australian Carbon Credit Units and from eligible arrangements with carbon service providers as primary production income at item 5 Business Income and Expenses – label G.
- Deductions related to becoming the holder of, holding and disposing of eligible ACCUs and income from eligible arrangements with carbon service providers supporting eligible ACCUs, should be included at item 5 Business Income and Expenses – label N in the Primary production column.
To check eligibility, see Taxation of Australian carbon credit units for primary producers.
Continue to: Instructions for completing the partnership tax return