The budget was handed down by Treasurer, Dr Jim Chalmers on 9 May 2023. Below are the key takeaways:
Businesses
The temporary full expensing measure will finish on 30 June 2023, but small businesses will have access to the temporary $20,000 instant asset write off until 30 June 2024.
A new incentive called ‘The Small Business Energy Incentive’ will be offered to businesses with an annual turnover of less than $50 million to electrify and save on their energy bills. These businesses will have access to a bonus 20% tax deduction for eligible assets supporting electrification and more efficient use of energy for the 2024 financial year. The maximum that can be claimed through the Energy incentive is $20,000, meaning $100,000 worth of expenditure will be eligible.
Personal
There are no changes to the planned stage 3 tax cuts that will apply from 1 July 2024. The tax cut will abolish the 37% tax bracket and lower the 32.5% tax bracket to 30%. Below is a table of the changes:
There are also changes to the Medicare Levy surcharge which have had no changes since 2014. Below is a table of the changes:
| Date | 1 July 2020- 30 June 2024 | 1 July 2024 onwards |
| Rate (%) | Income range ($) | Income range ($) |
| Nil | 0 – 18,200 | 0 – 18,200 |
| 19 | 18,201 – 45,000 | 18,201 – 45,000 |
| 30 | N/A | 45,000 – 200,000 |
| 32.5 | 45,001 – 120,000 | N/A |
| 37 | 120,001 – 180,000 | N/A |
| 45 | >180,000 | >200,000 |
1 July 2014- 30 June 2023
| Threshold | Base tier | Tier 1 | Tier 2 | Tier 3 |
| Single ($) | >90,000 | 90,001 – 105,000 | 105,001 – 140,000 | >140,001 |
| Family ($) | >180,000 | 180,001 – 210,000 | 210,001 – 280,000 | >280,001 |
| Surcharge | 0% | 1% | 1.25% | 1.5% |
1 July 2023 onwards
| Threshold | Base tier | Tier 1 | Tier 2 | Tier 3 |
| Single ($) | >93,000 | 93,001 – 108,000 | 108,001 – 144,444 | >144,441 |
| Family ($) | >186,000 | 186,001 – 216,000 | 216,001 – 288,000 | >288,001 |
| Surcharge | 0% | 1% | 1.25% | 1.5% |
Superannuation
From 1 July 2026, employers will be required to pay their employees’ super at the same time as their wages rather than quarterly, making it harder for employers to not pay super. Significant administration changes will be required to make the transition seamless. The super guarantee rate will also increase from 10.5% to 11% from 1 July 2023, as already legislated.
Individuals with balances over $3 million will be subject to an additional 15% tax. This tax will relate to the portion of the balance over $3 million and is set to affect 80,000 individuals. Revenue from the new tax is estimated to be $2 billion per year.
If you would like to discuss the Budget 2023 in further detail, please contact our office at 03 9973 5905.