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What’s new this year? 2023

A list of new initiatives incorporated in this year's Individual tax return instructions.

Last updated 23 June 2023

Removing the self-education expenses threshold

Before 1 July 2022, you were required to reduce your allowable work-related self-education expenses by $250 to calculate your deduction. The $250 non-deductible threshold has been removed from the 2022–23 income year. The changes will also apply to the fringe benefits tax (FBT) year starting on 1 April 2023.

These expenses are reported at question D4 of Individual Income Tax Return (IITR). You will no longer see a non-deductible category E for work-related self-education expenses in question D4. This applies to both myTax and myDeductions within the ATO app.

You must continue to maintain records of your deductible self-education expenses. However, you no longer need to keep records of any non-deductible self-education expenses for tax purposes that, prior to the change, were first offset against the $250 non-deductible self-education threshold.

Working from home

The fixed rate method for calculating your deduction for working from home expenses has been revised. The revised fixed rate method is $0.67 per work hour and available from 1 July 2022.

The fixed rate method has been revised to:

  • increase the rate per work hour that you can claim when you work from home
  • change the expenses the rate covers
  • change the record keeping requirements
  • remove the requirement to have a home office set aside for work.

You can also separately claim a deduction for the work-related use of depreciating assets such as office furniture and technology.

If you don't use the revised fixed rate method, you need to use the actual cost method. You can no longer use the shortcut method.

These expenses are reported at question D5 of Individual Income Tax Return (IITR).

Low and middle income tax offset

The low and middle income tax offset (LMITO) ended on 30 June 2022. It is not available for the 2022–23 income year.

Veterans' super (invalidity pension) tax offset

The veterans' superannuation (invalidity pension) tax offset (VSTO) is a non-refundable tax offset. This tax offset ensures veterans and their beneficiaries don't pay more tax because of the Douglas court decision. It applies from the 2007–08 income year.

You don’t need to apply for the VSTO. We will work out if you are entitled to a VSTO amount after you lodge your tax return.

To check your eligibility for the tax offset, see Veterans' superannuation (invalidity pension) tax offset.

Where to go next

Go to question Will you need the Individual tax return instructions supplement 2023?.

Return to main menu Individual tax return instructions 2023.