Home | About Us | Our Services | Our People | Contact Us | Employment | Disclaimer & Privacy Policy | Search Site

Office Address

Suite 902 Level 9
153 Walker St
North Sydney NSW 2060

Postal Address

PO Box 1827
North Sydney NSW 2059

Tel02 9959 4855
Fax02 9959 5849



Tax Facts

Small Business Tax

Below is a range of useful tax rates for small and medium sized businesses that apply for the 2023-24 year including:

- individual marginal tax rates

- company tax rates

- reasonable domestic and overseas travel allowance amounts

- acceptable amounts for goods taken from stock for private use by business owners

- motor vehicle cents per kilometre rate

- motor vehicle depreciation cost limit

- concessional and non-concessional superannuation contributions limits

- other superannuation and GST thresholds.

Resident Individual Tax Rates - 2023-24 year (unchanged from previous year)

TAXABLE INCOME

TAX ON THIS INCOME

$0 – $18,200

Nil

$18,201 – $45,000

19c for each $1 over $18,200

$45,001 – $120,000

$5,092 plus 32.5c for each $1 over $45,000

$120,001 – $180,000

$29,467 plus 37c for each $1 over $120,000

Over $180,001+

$51,667 plus 45c for each $1 over $180,000

Compulsory superannuation rate: 11% from 1 July 2023

Notes on tax rates

- Taxable income includes capital gains.

- Medicare levy is imposed at the rate of 2% of taxable income is not included.

- Resident individuals are entitled to a refund of imputation credits that exceed the primary tax payable.

- Resident individuals are entitled to the 50% discount on the disposal of assets that are held for at least 12 months.

Reasonable Travel Allowance Claims for Domestic & Overseas Travel

Where an employee, company director, or office holder receives an allowance for travel costs within or outside Australia and the person makes a claim for the costs of accommodation, food, drink and incidental expenses up to certain limits, then the person is not required to keep written evidence (i.e. receipts) of the expenses. These deduction limits are based on the salary of the person and the destination of the trip.

The travel must be for business purposes and the person must be sleeping away from home. Note this concession does not apply to self employed persons, including partners in a partnership.

Click here and then scroll down to access the reasonable travel allowance claims within Australia for 2023/24

Click here and then scroll down to access the reasonable travel allowance claims within Australia for 2022/23

Goods Taken from Stock for Private Use by Business Owners

The ATO each year issues a Determination which outlines the amounts that are acceptable as estimates of the value of goods taken from trading stock for private use by business owners (including their associates) in certain industries who operate as sole traders or in partnership. The relevant amounts need to be included in the assessable income of the individual for the year.

Note that an adjustment for the GST credits claimed in relation to these amounts also needs to be made.

Fringe benefits tax and a different set of valuation rules apply where the business owner is employed through a company or family trust.

Click here and then scroll down to access the acceptable amounts for 2022/23

Click here and then scroll down to access the acceptable amounts for 2021/22

Company Tax Rates

The standard company tax rate is 30%.

From the 2017–18 income year, companies that are base rate entities must apply the lower company tax rates (see below table).

A base rate entity is a company that both:

- has an aggregated turnover less than the aggregated turnover threshold  - which is $50 million from the 2018-19 year onwards

- 80% or less of assessable income is base rate entity passive income (e.g. interest, dividends, rent, and net capital gains). 

Income Year

Applicable Turnover Threshold
($)

Company Tax Rate
(%)

2017-18

25 million

27.5

2018-19

50 million

27.5

2019-20

50 million

27.5

2020-21

50 million

26.0

2021-22 and future years

50 million

25.0

Notes

Companies are required to maintain a franking account on a tax paid basis and are not entitled to a refund of imputation credits that exceed the tax payable.

Companies are not entitled to the 50% discount on the disposal of assets that are held for at least 12 months.

PAYG Withholding Calculator

This calculator is provided by the Australian Taxation Office and determines the PAYG Withholding for an employee who is paid either weekly, fortnightly or monthly.

Click here to access the calculator.

Motor Vehicle Depreciation Cost Limit

Since 1980, the depreciation deduction for cars has been limited by a deemed maximum cost price depending on the year in which the car was acquired.

Income Year

Depreciation Cost Limit
$

2016

57,466

2017

57,466

2018

57,581

2019

57,581

2020

57,581

2021

59,136

2022

60,733

2023

64,741

2024

68,108

Per Kilometre Motor Vehicle Rates

These rates are used by individuals when making a claim for motor vehicle expenses up to a maximum of 5,000 business kilometres. They are also used by employers when reimbursing employees for business use of their vehicles.

From 1 July 2015, a single rate applies as follows:

2015/16 Year:    66 cents per kilometre

2016/17 Year:    66 cents per kilometre

2017/18 Year:    66 cents per kilometre 

2018/19 Year:    68 cents per kilometre

2019/20 Year:    68 cents per kilometre

2020/21 Year:    72 cents per kilometre

2021/22 Year:    72 cents per kilometre

2022/23 Year:    78 cents per kilometre

2023/24 Year:    85 cents per kilometre

Taxation of Complying Superannuation Funds

Superannuation funds are taxed a rate of 15% on taxable income which includes employer contributions and the deductible portion of self employed contributions. Funds are entitled to a one-third discount on the disposal of assets that are held for at least 12 months and are also entitled to a refund of imputation credits that exceed the tax payable.

Income tax is not payable by the fund on income and capital gains where pensions are paid to the members.

There is currently up to a $1.9 million cap (applies from 1 July 2023) on the amount of superannuation benefits that an individual can have in pension phase which is not subject to tax. The excess over the cap will need to be withdrawn by the member or maintained in an accumulation phase account where earnings are taxed at the rate of 15%.  

Superannuation Contributions Work Test 

From 1 July 2022, individuals who are aged between 67 to 74 years old are able to make non-concessional and salary sacrificed contributions without meeting the work test, subject to the existing contribution caps (refer below). 

However the work test will need to be satisfied for individuals aged between 67 and 74 to claim a deduction for personal concessional contributions. The work test requires an individual to work a minimum of 40 hours in a 30 consecutive day period at any time during the financial year.   

Personal concessional or non-concessional contributions can be accepted up to 28 days after the month in which the person reaches the age of 75. 

Concessional Superannuation Contribution Limits

The following contribution limits apply for the 2023/24 year:   

- A single annual concessional contributions cap of $27,500 (unchanged) applies to all individuals - both concessional personal and employer contributions are included in this threshold.  

- the threshold at which high income earners pay additional contributions tax (Division 293 Tax) of 15% is $250,000 (unchanged). 

Carry-Forward "unused" Concessional Super Contributions

From 1 July 2019, individuals can make 'carry-forward' concessional super contributions if they have a total superannuation balance of less than $500,000 at 30 June of the previous year. The unused concessional contributions caps can be used on a rolling basis for five years upon which they will expire.

Example

Assume a person has unused concessional contributions at 30 June 2023 of $50,000. This means the person can make concessional contributions of up to $77,500 in the 2023-24 year without breaching the concessional contributions cap of $27,500 if their super balance across all funds was less than $500,000 at 30 June 2023.  

Non-Concessional Superannuation Contribution Limits

From 1 July 2021, the annual non-concessional (after-tax) contribution cap was increased to $110,000 per year, and $330,000 under the 3 year bring-forward rule.

The following table outlines the non concessional contribution and the bring forward amounts available from 1 July 2023: 

Total superannuation balance 

Non concessional contribution and bring forward available

Less than $1.68 million

Access to $330,000 cap (over three years)

$1.68 million to less than $1.79 million

Access to $220,000 cap (over two years)

$1.79 million to less than $1.9 million

Access to $110,000 cap (no bring-forward period, general non-concessional contributions cap applies)

$1.9 million or more

Nil

The total superannuation balance is determined on 30 June of the previous financial year.

Other Superannuation Thresholds for 2023/24 

  • Super guarantee (SG) rate - From 1 July 2023, increased to 11% (from 10.5%) of ordinary time earnings. The rate will progressively increase to 12% by 1 July 2025.
  • Maximum super guarantee contributions base – increased to $62,270 (from $60,220) per quarter. Employers don’t need to provide the minimum super guarantee support for the part of earnings above this limit.
  • Capital Gains Small Business contributions cap – increased to $1,705,000 (from $1,650,000). This is a lifetime cap on non-concessional contributions which have been sourced from the retirement or 15-year small business capital gains tax concessions. Note these contributions don't count towards the individual's non-concessional contribution limits above.  
  • Low rate tax cap – increased to $235,000 (from $230,000). The low rate cap (LRC) is the maximum amount of superannuation lump sum benefits (not including the tax-free component) which can be received at a nil rate of tax (or, in the case of untaxed components, at 15% rate of tax instead of 30%).  This cap only applies to superannuation lump sum benefits received on or after preservation age and before age 60. The LRC applies to super lump sums received once a condition of release with a nil cashing restriction is met (ie funds are unrestricted non-preserved). Conditions of release with a nil cashing restriction include retirement, permanent incapacity, financial hardship and compassionate grounds. 
  • Government Co-Contribution lower income threshold – increased to $43,445 (from $42,016). This is the threshold above which the maximum co-contribution amount of $500 begins to taper. If your total income is equal to or less than $43,445 in the 2023/24 financial year and you make after-tax contributions of $1,000 to your super fund, you’ll receive the maximum co-contribution of $500.
  • Government Co-Contribution higher income threshold – increased to $58,445 (from $57,016). This is the threshold above which the co-contribution will not be paid.
  • Low-income super tax offset - remains at $500 and the cut-off threshold remains at $37,000. If you’re eligible for a low-income super tax offset, the government will automatically refund up to $500 of the tax deducted on your super guarantee and other pre-tax contributions. 

GST Thresholds

Item

* Threshold

Requirement to issue a tax invoice

$75

No requirement to withhold if supplier does not quote ABN

$75

Turnover for compulsory registration for GST

$75,000
(for any 12 months)

Turnover for compulsory registration for GST (non-profit entity)

$150,000
(for any 12 months)

Annual turnover for compulsory use of non-cash accounting

$10,000,000

Annual turnover for compulsory monthly electronic BAS lodgement

$20,000,000

* all amounts are GST exclusive 

Disclaimer

This information is provided as a guide only and is not intended to constitute professional advice. You should obtain appropriate advice concerning your particular circumstances.

The firm disclaims all liability for any loss or damage to any person or organisation, whether a user of this site or not, for the consequences of anything done or omitted to be done by any such person relying on this information.




Liability limited by a scheme approved under Professional Standards Legislation
Small Business Articles by Australianbiz