No Match Found
With the focus firmly on multinationals in this Federal Budget and progressing the Government’s election commitment to remove customs duty and Fringe Benefits Tax for certain zero or low emissions vehicles, there is very little else in the way of tax measures for business in general.
The Government has announced that it will not proceed with the measure announced in the 2021-22 Budget, which was proposed to allow taxpayers to self-assess the effective lives of intangible depreciating assets and was to apply to assets acquired on or after 1 July 2023.
As a result, the statutory effective lives of intangible depreciating assets will continue to be used in determining deductions for depreciation in respect of intangible assets from 1 July 2023.
Unfortunately, the Government has not announced any extension of the temporary full expensing (TFE) measure which currently permits a deduction for the full cost of certain depreciating assets acquired and used by eligible businesses. The TFE measure will continue to apply in relation to eligible depreciating assets which are installed and ready for use by 30 June 2023.
Subject to any further announcements, from 1 July 2023, all accelerated depreciation measures will have ended, other than the instant asset write-off under the small business simplified depreciation measures, which will revert to a $1,000 asset cost cap and is limited to taxpayers with aggregated turnover less than $10 million.
Furthermore, no changes were made to the temporary loss carry back tax offset applicable to eligible companies which will expire soon, with the 2022-23 income year being the last year for which the loss carry back offset can be claimed.
As expected, there was no announcement in this Budget to extend or provide further cost of living relief through reductions in the excise and excise-equivalent customs duty rate on fuel. The excise and excise-equivalent customs tax rates have already reverted to their normal levels on 29 September 2022 at the end of the temporary six-month relief period.
The Government has already implemented an election commitment in relation to electric vehicles by removing the previously applicable five per cent import tariff. Specifically, from 1 July 2022, electric vehicles, plug-in hybrid vehicles and hydrogen fuel-cell vehicles with a customs value less than the fuel efficient luxury car tax threshold (for the 2022-23 financial year, AUD 84,916) have a ‘Free’ rate of duty.
Other Budget measures which relate to customs and trade include the following: