Before 1 July 2022, clients were required to reduce allowable work-related self-education expenses by $250 to calculate their deduction. They could however, offset the $250 reduction through self-education expenses that weren't normally deductible.
From 1 July 2022, if clients claiming a deduction for self-education expenses:
- no longer need to reduce your allowable expenses by $250
- can claim a deduction for all allowable self-education expenses.
The changes also apply to the fringe benefits tax (FBT) year starting on 1 April 2023.
You will no longer see non-deductible self-education expenses (which were known as category E expenses) in this question.
Clients must continue to keep records of their allowable self-education expenses.
The fixed rate method for calculating your deduction for working from home expenses has been revised.
The revised fixed rate method allows clients to claim 67c per work hour and is available from 1 July 2022.
The fixed rate method has been revised to:
- increase the rate per work hour that clients 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.
Clients can also separately claim a deduction for the work-related use of depreciating assets such as office furniture and technology.
If clients don't use the revised fixed rate method, they need to use the actual cost method.
Clients can no longer use the shortcut method, this method ended 30 June 2022.
From 1 July 2022, the cents per kilometre rate for work-related car expenses is 78c.
Use the 78c rate if your client is using the cents per kilometre rate for work-related car expenses in 2022–23 income year.
The low and middle income tax offset (LMITO) ended on 30 June 2022. It is not available for 2022–23.
The outcome of your clients 2023 tax return may be different than in previous income years. They may have a lower refund or receive a tax bill, see Why your tax return outcome may change in 2023.
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 decision. It applies from the 2007–08 income year.
Your clients don’t need to apply for the VSTO. We will work out if they are entitled to a VSTO amount after they lodge their tax return.
To check your clients' eligibility for the tax offset, see Veterans' superannuation (invalidity pension) tax offset.
The age an eligible individual can make a downsizer contribution to their superannuation has changed.
If your client has reached the eligible age, they (each individual) may be able to contribute up to $300,000 from the proceeds of the sale (or part sale) of their home into their superannuation fund.
To make a downsizer contribution; the eligible age is as follows:
- From 1 January 2023, 55 years old or older
- From 1 July 2022, 60 years old or older
- From 1 July 2018, 65 years old or older.
For the full eligibility criteria and other details, see Downsizer contributions for individuals.
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) can claim the bonus deduction as an additional 20% deduction, on top of their ordinary deduction, for expenditure incurred for the provision of external training courses to employees by certain 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.
The Treasury Laws Amendment (2022 Measures No. 4) Act 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) can claim the bonus deduction as an additional 20% deduction, on top of their ordinary deduction, for eligible business expenditure incurred for the purposes of their digital operations or digitising their operations. This includes expenditure on a depreciating asset provided the asset was first used or installed ready for use by 30 June 2023. 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.A summary of key changes and new measures affecting your clients when lodging 2023 individual tax returns.