New Bill Proposes Exciting Changes for Small Businesses and Charities


The Australian Parliament has introduced the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023 to boost the economy and assist small businesses and charities. This comprehensive bill includes several income tax measures to benefit these sectors:

  1. Small Business Instant Asset Write-Off: The bill increases the instant asset write-off threshold from $1,000 to $20,000 for eligible assets, benefiting small businesses with an annual turnover of less than $10 million. This change is effective from July 1, 2023, to June 30, 2024.

  2. Small Business Energy Incentive: An enticing incentive offers a 20% bonus deduction for eligible energy-efficient expenditure, with a maximum of $20,000 on eligible costs up to $100,000. Businesses with a turnover under $50 million can benefit from this between July 1, 2023, and June 30, 2024.

  3. Super Fund Non-Arm's Length Expense Rules: Amendments to non-arm's length income rules for superannuation funds aim to exempt larger funds and limit taxable income from non-arm's length expenses. These changes apply from the 2018–19 income year onward.

  4. Expanding AFCA Powers: The bill proposes to allow the Australian Financial Complaints Authority (AFCA) to consider complaints related to superannuation, even if they don't strictly meet the legal definition of a "superannuation complaint."

  5. Accounting Standards and General Insurance Contracts: To ease the tax compliance burden on the general insurance industry, the bill aligns with the new accounting standard AASB 17. General insurers can use audited financial reporting information for tax returns starting from January 1, 2023.

  6. Deductible Gift Recipients (DGRs) and Other Changes: The bill introduces "community charities" as a new class of DGRs, simplifies DGR endorsement processes, and extends tax exemptions for various organizations.

These changes aim to stimulate growth, reduce compliance complexities, and provide a supportive environment for small businesses, charities, and superannuation funds. Keep an eye on further developments related to this important legislation

Source: Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023, Parliament of Australia website, 13 September 2023, accessed 13 September 2023.
Got questions? Reach out to Tax Ideas Accountants & Advisers at +61 2 83181545 or book an appointment on our live calendar.

Written by Ideas Group

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