Given the ever-changing landscape of taxes, it’s always best to get your return prepared by a professional. Tax Guru Chartered Accountants are experts in tax law and have provided us with a list of changes and focuses the ATO have in the forefront for last financial year.
Before you complete your tax return for 2023–24, here is a summary of what’s new and any changes that may affect you.
Changes to income tax rates
The Australian Taxation Office (ATO) has made a welcomed change to individual income tax rates and thresholds. As a result, for most taxpayers, you will pay less tax each payday and keep more of what you earn. This change will apply to all taxable income you earn from 1 July 2024. The changes will not impact your 2023-24 tax return.
Superannuation Changes from 1 July 2024
For the first time since July 2021 the Australian Government has raised the contribution caps for superannuation. Both the concessional (new limit $30k) and non-concessional ($120k) contribution limits will increase – allowing you to put more of your money into super. The other change is an increase to the employer superannuation guarantee rate (from 11% to 11.5%), meaning your employer, if you have one, will need to put more into your super account.
Inflated rental property claims in focus
Despite 86 per cent of property owners using a registered tax agent, 9 out of 10 rental property owners are still making mistakes in their income tax returns. As such, ATO will continue to check tax returns having exorbitant expenses and lack of substantive documentation. To determine the accuracy of tax returns lodged by rental property owners, the ATO cross checks data from a range of sources including banks, land title offices, insurance companies, property managers and sharing economy providers.
Cents per kilometre increase
If you’re claiming work-related car expenses using the cents per kilometre method, this rate has increased to 85c per kilometre for the 2023-24 income year. The cents per kilometre rate is an all-inclusive rate and covers all your eligible car expenses including registration, insurance, repairs, maintenance, fuel, and decline in value. You can’t claim a deduction for these costs separately, elsewhere in your return.
Crypto and other financial transactions
The ATO has announced a data-matching program that will collect information from cryptocurrency exchanges on crypto trades for the 2024 to 2026 income years. According to the ATO, the innovative and complex nature of crypto can lead to a genuine lack of awareness of the tax obligations associated with these activities. It is taxpayers’ duty to report these transactions to ATO to the best of their knowledge.
To ensure you get the best possible return and to avoid any errors, the team at Tax Guru Chartered Accountants are located at Suite 3/164 Welsford Street, Shepparton and can be reached on 03 5822 1900 or through email info@taxguru.net.au. For more information, you can visit their website www.taxguru.net.au.
