Tax Changes 2023: What Small Businesses Need to Know


Navigating the tax world as a small business can seem like an uphill battle, especially when the Australian tax system regularly introduces new changes that can take time to follow. 

To give you a helping hand, we’ve compiled the following guide that lays out the new tax changes in the 2023 financial year to ensure your small business has all the necessary information.


No More Take Back Initiatives

Many measures the Australian Government introduced to help businesses during the COVID-19 pandemic are gradually drawing to a close. The Loss Carry Back Tax Offset program is one that won’t be extended past FY23, meaning businesses won’t be able to offset tax losses against previous years’ profits from FY24. 

As a result, businesses must be vigilant regarding tax strategies, as it won’t be as easy to receive financial relief if tax losses occur in FY24. 


Temporary Full Expensing Draws to a Close

The Temporary Full Expensing scheme enabled eligible businesses to immediately write off asset purchases (upto a certain value for passenger vehicles), as opposed to writing the cost off over a few years (depreciation). 

The scheme will not expand into FY24. Those with an annual turnover of less than $10 million can still continue to enjoy the privilege of instantly deducting the full cost of eligible assets, as long as they fall under the new $20,000 threshold, until 30 June 2024. (This returns the asset write-off limit to the same level it was at in 2015.)


Working From Home Deductions Altered

The ATO will no longer accept deductions calculated with the shortcut or old fixed rate method. Instead, individuals must use the revised fixed rate method or the actual method and have reliable and accurate evidence for their working-from-home hours over the entire income year. 

The revised fixed rate is 67 cents per hour and covers expenses relating to energy, computer consumables, internet usage, mobile and home phone usage, and stationery. You can claim deductions for assets separately. 


Introduction to The Small Business Energy Incentive

Details surrounding the Small Business Energy Incentive are yet to be finalised, but it’s looking promising. With the incentive, small businesses with less than $50 million in turnover can claim an additional 20% deduction on energy-efficient expenses, such as electric heating systems. 

Going hand in hand with the energy incentive is the Energy Bill Relief Fund. This incentive means small businesses become eligible for energy bill relief of up to $650, depending on their area. The fund reflects the rise in energy bills and ensures small businesses don’t suffer from inflated prices. 


Lodgment Penalty Amnesty to Help You Get it Right

Small businesses with annual turnover of less than $10 million will be eligible for the Lodgment Penalty Amnesty to get back on track with taxes. With the amnesty, any outstanding taxes from 1st December 2019 and 29th February 2022 won’t be penalised as long as you lodge them from 1st June to 31st December 2023. 


Technology Investment Boost (not yet law)

In March 2022, as part of the 2022-23 Budget, the Morrison Government announced the Technology Investment Boost for small businesses, which would allow businesses with an annual turnover of less than $50 million, to deduct an additional 20% of the expenditure incurred for their digital operations. 

However, the legislation underpinning these tax breaks hasn’t been passed yet, and you won’t be able to claim the boosts until the law has been enacted. 

Were the legislation to pass, even something as simple as getting a Xero subscription could result in an extra deduction. It’s a free kick for small businesses – but only if the legislation ends up passing. 

As such, good detailed records will go a long way to identifying these extra deductions.


Other considerations

While small business owners should be aware of the extra perks and opportunities available, it’s important to approach tax planning holistically, and consider factors beyond tax benefits. 

There are always opportunities to optimise your tax position – but you should never make decisions based solely on the tax benefits. 

For instance, small businesses can claim a large upfront deduction by pre-paying their rent up to a year in advance. But then you may have strained your cash flow for a year to get a temporary tax advantage, and limited your ability to invest in other business needs throughout the year. Striking a balance between tax optimisation and business sustainability should be the goal.

When you’re dealing with complicated financial & tax matters, it’s always a good idea to get help from experts who are skilled and have the necessary experience. They’ll offer personalised advice and help you make smart money decisions that fit your business goals and set you up for long-term success.


Need Help Getting On Track With Your Taxes? We Can Help

If you have any questions, reach out to us at Glance Consultants on 03 98859793 or at

How To Hit June 30th With Confidence


As the end of the financial year draws ever closer, it can be a stressful time for business owners, especially given the last 12 months have had their fair share of ups and downs. However, there is no better time than now to look optimistically to the future, and here’s how you can hit June 30th with some needed momentum:


Tidy Up Loose Ends

We’re all guilty of putting bookkeeping to one side now and then, so you’ll likely have some unfinished work in this area. Now is the time to get all your receipts/invoices and books upto date to ensure your data for the past year is reliable and accurate. A clear overview of your finances over the last twelve months is vital to boost your business into the new financial year with a sense of direction and purpose.


Make Sure Your Up To Date With New Legislation

There are often a ton of changes when it comes to legislation when the new financial year rolls around. The minimum wage increase is one of the most crucial changes to be aware of, with a rise of 5.75% starting on July 1st 2023. The superannuation guarantee %  on wages is changing, lifting from 10.5% to 11% on 1 July 2023, which means if you employ people, it’s time to adjust how much you put away for each pay run. 

Understanding these financial changes ensures you can prepare your business’s budget for the upcoming financial year and remain compliant.


Stock Take

If you run a product based business, a stock take is a must in June (prior to 30 June). While this may not be a fun process,  there are benefits of this process. This process can help you make informed decisions about next year and the direction you want to go when it comes to stock that sold, versus stock that lasted a bit longer than expected thus providing greater insight.


Know Your Deductions

While many expenses are tax deductible or a write off, unfortunately not every expense is. Connecting with your accountant as the financial year draws to a close can be an excellent way to ensure you’ve claimed all the correct expenses to avoid any issues with the ATO.


Working from Home

Please remember there are changes when it comes to work from home this year. You will need to make sure you have adequate records to prove your work from home hours. The revised fixed rate is now $0.67/hour.  Use timesheets, diary entries, and other proof of working from home to ensure you’ve covered your back!


Do You Need Support With Bookkeeping? We Can Help 

If you’re anticipating a busy year ahead, it’s best to get on top of your finances sooner rather than later. Contact Glance Consultants today.

SUBSCRIBE to the Business Accelerator Magazine