UPDATES

2023 Tax Changes on Individuals

ADDING CLIENTS TO PRACTICE

For individual taxpayers, new changes has been made effective this FY2023:

Low Income Tax Offset (LITO) - up to maximum of $700 of which those earning $37,500 or less will get the full amount. Earning above this limit will have adjusted LITO.
Low and Middle Income Tax Offset (LMITO) - no longer available. Thus, expect a lower tax refund, if any.
Veterans' Super Tax Offset (VSTO) - Triggered by the Douglas Court Decision, veterans and their beneficiaries are entitled to non-refundable tax offset. ATO will determine such entitlement to veterans that meets the requirements.

Please note that tax offsets only reduces your tax payable to 0. Any excess are not refundable.

For detailed information visit ATO website by clicking on the image above.

The Australian Taxation Office has released a final rollout from November 13, 2023 for all entities with ABN registrations excluding sole traders. The new process requires these entities to nominate their agent through Online services for Business. Within 28 days, the agent must then add the client to their client lists. This is a deviation to the previous practice wherein the agent could simply add new clients to their client list.

Entities affected of this change are as follows (list may change):

companies including strata title bodies
partnerships
trusts
not-for-profits
joint ventures
cooperatives
self-managed super funds (SMSFs)
APRA-regulated superannuation funds

For more details click on the image at the top to access the ATO link for more details.

Director Obligations & Penalties

Company directors including former will incur penalties personally for not meeting timely obligations in its taxes and superannuation. Specifically, non-payment of company's:

pay as you go withholding (PAYGW)
goods and services tax (GST)
super guarantee charge (SGC)

These penalties will take effect upon receipt of director penalty notice from ATO.