April CEO Message

Post-Budget De-Brief

I don’t know about you but where has 2022 gone?

It seems that between the ongoing worries of the pandemic, flash-flooding, and the unceasing war on Ukraine, 2022 has been a very eventful year…and we’re only a quarter of the way through!

As we have an upcoming election and have just had an early budget release, I thought I would outline some key points for you to consider in the next 3 months.

Business clients

There is still scope to claim 100% tax deduction for asset purchases. The 100% deduction will apply until June 2023.

The budget announced some additional deductions for technology expenditure and external training expenses, but you should be aware that the additional 20% deduction will be claimable in your tax return in the following income year (i.e., if you spend $100,00 on technology purchase in the 2022 year, you will be eligible for a 100% tax deduction as well as an additional 20% deduction in the next financial year.

With technological advancements in the ATO, it will now be possible to vary quarterly instalments on income tax as a direct result of the profits showed in software. Therefore, it is very important to ensure that your records are kept up to date as this may automate these quarterly instalment estimates.

Tax deadlines for companies and superfunds are fast approaching (15 May 2022) and for individuals, partnerships and trusts, the deadline is the 6 June 2022. So if you haven’t sent us your company or trust information, please work on getting us this information as a priority. Please note that we will need to receive your information at least four (4) weeks before the due date to ensure we can meet the ATO’s lodgement deadline.

Superannuation

Don’t forget the deductible superannuation limits have increased from $25,000 per annum per individual to $27,500 per annum for the 2022 year. If you’ve got some spare cash, make sure you consider the option of increasing your superannuation balances. Just don’t forget to ensure that you complete a notice of intent to claim a tax deduction with your superfund indicating your intention to claim a tax deduction.

If you have a combined individual superannuation balance under $500,000 and haven’t used your entire deductible super limit between July 2019 and 30 June 2021 (contributions limits were $25,000 in 2019-2021 and $27,500 in 2022), you may be entitled to catch up your contributions. As with your regular annual contributions, you will be required to complete a notice of intent to claim a tax deduction when making the contribution to your superfund.

In relation to after-tax deductions, if you received a windfall inheritance, you will be able to contribute this into your superannuation. If you hadn’t made this contribution in previous years, you will be entitled to contribute $330,000 per individual over a 3-year period.

We at WSC Group are available to help you with any of these matters so please feel free to reach out to us on 1300 365 125 or email us at [email protected].