The 2023 Federal Budget 

Hard to recall a budget with no surprises and with just about everything leaked early or had already been announced. It was almost boring watching the speech last night even for us accountants!

Highlights from the budget courtesy of the Institute of Public Accountants:

A $4.2 billion surplus buffeted by stronger commodity prices, a strong jobs market, and strong immigration. While a surplus is welcomed, it is also short lived because Australia is predicted to return to the red over the forward estimates.

Inflation remains elevated at 6% for this year, it is expected to fall to 3.25% in 2023-24 and return to the RBA’s target band of 2-3% in 2024-25. The Government also believes that its cost-of living measures will take 0.75 of a percentage point off inflation in 2023-24.

Tax-related measures:

▪ Small businesses instant asset write-off threshold set at $20,000 per asset for 2023-24 for businesses with aggregated annual turnover of less than $10m.

▪ Small Business Energy Incentive – businesses with annual turnover of less than $50m will be able to claim an additional 20% deduction on spending that supports electrification and more efficient use of energy. Eligible assets or upgrades will need to be first used or installed ready for use between 1 July 2023 and 30 June 2024.

▪ Small business lodgement penalty amnesty – will be provided for small businesses with aggregate turnover of less than $10m to encourage them to re-engage with the tax system. The amnesty will remit failure-to-lodge penalties for outstanding tax statements lodged in the period from 1 June 2023 to 31 December 2023 that were originally due between 1 December 2019 to 29 February 2022.

▪ FBT exempt rules for electric vehicles (EVs) – the eligibility of plug-in hybrid electric cars will sunset from 1 April 2025 from the FBT exemption for eligible electric cars; (that was short lived!).

▪ Personal tax rates unchanged for 2023-24; Stage 3 start from 2024-25 unchanged.


▪ Payday super – employers will be required to pay their employees’ super guarantee at the same time as their salary and wages from 1 July 2026.

▪ Pension drawdowns: no reduction in minimum – the Budget did not announce a further extension to 2023-24 of the temporary 50% reduction in the minimum annual payment amounts for superannuation pensions and annuities

▪ Non-arm’s length income (NALI) – the amount of non-arm’s length expenses (NALE) taxed at 45% as NALI will be limited to twice the level of a general expense from 1 July 2023 for SMSFs and small APRA funds. 

▪ Super account balances above $3m – the Budget confirmed the Government’s intention to apply an additional 15% tax on total superannuation balances above $3 million from 1 July 2025.

Cost of living

$14.6 billion cost‑of‑living plan will provide help with power bills, bring down out‑of‑pocket health costs, support vulnerable Australians, create more affordable housing, and boost wages,” the Treasurer said.

The funds cover energy relief for households and small businesses, a boost to JobSeeker of $40 per fortnight as of 20 September, and an increase to the age cut-off for the Parenting Payment (Single) from eight to 14 from 20 September 2023.

Energy costs

Some 5.5 million Australian households and one million businesses are to receive financial support with their rising energy bills under a multi-billion-dollar package.

From July 2023, this plan will deliver up to $500 in electricity bill relief for eligible households and up to $650 for eligible small businesses.

Where to get the full Budget

As ever the details will emerge over coming weeks and for more information the 2023 Budget Papers are available from the following website:

How to beat the recession mindset:

You don’t know how good the good times are unless you have some tougher times with our Dr Steven Enticott & Mike Loder (Ticker News)

How to thrive past a recession:

How to be a sustainable business

It’s easier than you think with our Dr Steven Enticott & Mike Loder (Ticker News) To measure, reduce, offset and adopt a climate positive project:

Tax return deadlines

Yep, we are there now and it’s the last moment – so act now and if there are circumstances preventing you contact us today and we will add you to our extension list with the ATO!