Standard deduction increase: The standard deduction for 2023 (which'll be useful when you file in 2024) increases to $13,850 for single filers and $27,700 for married couples filing jointly. Tax brackets increase: The income tax brackets will also increase in 2023.
January 23: IRS begins 2023 tax season and starts accepting and processing individual 2022 tax returns. January 27: Earned Income Tax Credit Awareness Day to raise awareness of valuable tax credits available to many people – including the option to use prior-year income to qualify.
Fuel/Petrol without a logbook: Even if you haven't kept a car logbook, as long as you can demonstrate how you calculate the number of kilometres you're claiming, the ATO will allow a claim up to a maximum of 5,000km, using the cents per km method.
How much can I claim with no receipts? You can make a claim for up to $300 worth of work-related expenses even if you don't have any receipts for the products you've bought yet, as stated by the Australian Taxation Office (ATO) (in total, not per item). It's possible that you'll get a reimbursement of more than $300.
The 2023 financial year in Australia starts on 1 July 2022 and ends on 30 June 2023. The financial year for tax purposes for individuals starts on 1st July and ends on 30 June of the following year.
For another detailed explainer of the measures and associated politics – see article: Stage-three tax cuts: what are they, how do they work and why do they exist? A Budget 2019 measure reduced the 32.5% rate to 30% from 1 July 2024 and increased the 19% income ceiling to $45,000 from 1 July 2022.
As announced in the 2022–23 federal Budget, the LMITO was increased by $420 (a one-off $420 cost of living tax offset) for the 2021–22 income year. This increases the base amount to $675 and the full amount to $1,500.
In accordance with the legislated schedule of super guarantee increases, the rate increases to 11% from 1 July 2023. From 1 July 2024, the rate increases to 11.5%.
June 30 – End of financial year. July 28 – Q4 BAS is due. October 31 – Tax return is due.
Salary sacrifice reduces your taxable income, so you pay less income tax. Only 15% tax is deducted from your salary sacrifice amount compared to the rate you pay on your income, which can be up to 47% (including the Medicare Levy).
An Australian earning $65,000 a year is now considered the 'typical' worker.
Realistically speaking, $60,000 is not enough to support a family of four in Sydney, Melbourne, or another expensive city. In a less expensive location, however, it could be the right income for your needs.
If you make $300,000 a year living in Australia, you will be taxed $111,667. That means that your net pay will be $188,333 per year, or $15,694 per month. Your average tax rate is 37.2% and your marginal tax rate is 47.0%.
Salary sacrifice reduces your taxable income, so you pay less income tax. Only 15% tax is deducted from your salary sacrifice amount compared to the rate you pay on your income, which can be up to 47% (including the Medicare Levy).
The main benefit of salary sacrificing into super is that the money is taxed at a lower rate than if it had been paid into your after-tax account. For example, if you're in the 37% tax bracket and you receive $1,000 in after-tax pay, you'll only have $630 left after income tax is deducted.
For example, 1 July 2022 to 30 June 2023 is the Financial Year for 2023, also abbreviated to FY23.
The same calendar that works in 2023 will also work again in 2034, 2045, 2051, 2062, 2073, 2079, 2090, 2102, 2113, and 2119.
Income Tax year (tax year)
For example, the 2023 to 2024 tax year starts on 6 April 2023 and ends on 5 April 2024.
What Are the Stage 3 Tax Cuts? The stage 3 tax cuts are due in July 2024. They are part of the government's income tax package, introduced and legislated in 2018 and 2019. Under the stage 3 tax cuts, the 37% tax bracket would cease while the 32.5% bracket would drop to 30%.
All of the tax you paid during the year is refunded to you. However, once you start earning a little more and your income moves above the tax free threshold, you'll no longer get all of your tax back on your return. The same thing applies if you get a promotion or a new job that earns more money.