As we approach the end of the financial year, it's important to start thinking about your tax and the changes that are about to occur, whether you're an individual taxpayer or a business owner. Here are some key changes to be aware of to ensure you make the most of tax time:

For individual taxpayers:

• Working From Home Deductions: If you've continued working from home due to the pandemic, you may be eligible to claim new expenses as tax deductions, including upgraded fixed rate costs related to your home office, such as internet and electricity bills. This revised fixed rate method also alleviates individuals of the requirement for a dedicated home office space when claiming these expenses.
  
  
• Tax Cuts: From July 1st, 2023, tax brackets are expected to change, and those earning between $37,000 to $48,000 per annum will receive a cut, with gradual changes to others inside this wider tax bracket. The Low- and Middle-Income Tax Offset (LMITO) will be upheld from the 2021-22 financial year and continue into the upcoming.
  
  
• Superannuation Changes: From July 1st, 2023, the superannuation guarantee rate will increase to 11%, and employers will be required to contribute more money to their employees' superannuation accounts with a forecast continued uplift of 0.05% every financial year until 2025.

Ensure your personal information is up-to-date including verifying your Tax File Number and your tax residency status.

For business owners:

• Instant Asset Write-Off: The instant asset write-off threshold will be temporarily increased to $20,000, allowing businesses to claim an immediate tax deduction for the full cost of eligible assets.
  
  
• Loss Carry-Back Scheme: If your business has made a loss, you may be eligible to claim a tax refund by carrying back the loss to a previous year.
  This scheme has been extended to include the 2022-2023 income year, so to offset previously taxed profits as far back as the 2018–19 financial year.

For the property market:

• Home Guarantee Scheme: The government has announced an expansion to various home guarantee scheme criteria, including the inclusion of Australian permanent residents as eligible borrowers across these schemes.
  
  
• Increased Demand: The government will introduce an increase in the depreciation rate for eligible new build-to-rent projects from 2.5% to 4% per annum for all construction commencing after May 9th, 2023.
  
  
• Increased Activity in the Construction Sector: The instant asset write-off and loss carry-back scheme may encourage businesses in the construction industry to invest in new equipment and expand their operations, leading to increased construction activity and potentially more supply in the property market.
  
  
• Changes to Stamp Duty: From 16 January 2023, first-home buyers can opt out of paying stamp duty in favour of an ongoing annual land tax payment under the First Home Buyer Choice policy, making it easier for individuals to enter the property market, particularly in expensive areas.
  

This time of year can be a flurry of activity, but with the right assistance, it doesn't have to be a stressful one. Get in touch with the property team at Nelson Alexander for everything you need to know about buying, selling or managing your investment property.

Please note, this blog post is intended to provide a general understanding of the subject matter and to help you assess whether you need more detailed information.