6 Key Points to Consider for Tax 2023

It’s a New Financial Year, which means Tax Time is here again!

Our mission is to optimise your tax position based on the current taxation laws.

We aim to get it right the first time. To avoid ATO scrutiny, we don’t do dodgy deductions.

We don’t make the laws but we do help you stay within them. We ask you to be prepared with your deductions and income so we can make an accurate calculation of your tax position.

Below are key points to help you stay on the right side of the ATO.

6 Key Points to Consider for Tax 2023

    1. WAIT – ATO is urging individuals to wait until late July to lodge 2023 tax to avoid mistakes and missed information. You must wait until your Income Statement is TAX READY – You can find your Income Statements via MyGov to check if they are Tax Ready.

    1. DUE DATE – if you are up to date and received a refund in FY22, your due date will be 15 May 2024. So you have plenty of time.

    1. WORK FROM HOME (WFH) DEDUCTION CHANGES: Now that COVID has passed ATO have changed the way you claim WFH.

    1. ATO DATA MATCHING RAMPS UP: ATO are now using big data sets to check your returns. Their main focus is on:
        • RENTAL PROPERTY LOANS: ATO will have transaction level data on loans so they can check interest and if you are using the loan for private purposes. We will be requesting full loan statements for Tax 23 to pre-check this before we lodge

        • GIG ECONOMY – Airbnb, Uber, Airtasker, Fivrr, OnlyFans etc. ATO are getting intel on all of these types of income.

        • ASSET SALES – Capital Gains Tax – ATO continue to track this

    1. REFUNDS SHRINK – ATO removed the Low and Middle Income Tax Offset (LMITO). This will mean your refund will be up to $1,500 smaller depending on your income level.

    1. ATO FOCUS AREAS – ATO have announced 3 key focus areas for Tax 2023.
        • Rental Property Deductions

        • Work Related Expenses

        • Capital Gains Tax


No need to rush to get tax 2023 done. We know people are keen to get their refund BUT rushing to lodge early often leads to mistakes being found by ATO later on.

ATO gather a massive amount of data such as: employment income, bank interest, private health details, share dividends, capital gains, managed fund income etc. This can take a month or more to flow through so the more complex your return, the longer you should wait.

Managed funds are usually the biggest hold up. You will need to wait until October before that information flows though.


Lodging with a registered Tax Agent, like us, affords you a longer time frame to lodge your tax.

Lodgement Due Date Description
31 October 2023 – Tax return for all individuals where one or more prior year tax returns were outstanding as at 30 June 2023.
– Also those who self-lodge
31 March 2024 Tax return for individuals whose latest return resulted in a tax liability of $20,000 or more
15 May 2024 Tax returns for all remaining individuals and trusts not required earlier (Most People)
Individual Tax Lodgement Dates – ref ATO


The fixed rate method for calculating your deduction for working from home expenses has been revised. This revised method is available from 1 July 2022.

The fixed rate method has been revised to:

    • increase the rate per work hour that you can claim when you work from home

    • change the expenses the rate covers

    • change the records you need to keep

    • remove the requirement to have a home office set aside for work.

If you don’t use the revised fixed rate method, you need to use the actual costs method to claim a deduction for the additional expenses you incur as a result of working from home.


Eligibility to claim

To use the revised fixed rate method, you must:

    • have a record of the total number of hours you work from home and the expenses you incur while working at home

    • have records for expenses the fixed rate per work hour doesn’t cover and that show the work-related portion of those expenses.

How it works

You can claim 67c for each hour you work from home during the relevant income year. The rate includes the additional running expenses you incur for:

    • home and mobile internet or data expenses

    • mobile and home phone usage expenses

    • electricity and gas (energy expenses) for heating, cooling and lighting

    • stationery and computer consumables, such as printer ink and paper.

The rate per work hour (67c) includes the total deductible expenses for the above additional running expenses. If you’re using this method, you can’t claim an additional separate deduction for these expenses.

More detailed info on the ATO website here

How to claim expenses the fixed rate doesn’t include

You can separately claim a deduction for the work-related use of technology and office furniture such as chairs, desks, computers, bookshelves. These are generally depreciating assets that decline in value over time. You can also claim the repairs and maintenance of these items.

If the item cost $300 or less and you use it mainly for a work-related purpose, you can claim an immediate deduction for the cost in the year you buy it. This may include items, such as keyboards, computer mouses, power boards, desk lamps and chargers.

You can claim a deduction for the decline in value of depreciating assets over the effective life of the item, if it either:

    • cost more than $300

    • forms part of a set that together cost more than $300.

You may choose to work out the decline in value of low-cost assets and low-value assets with a cost or opening adjustable value of less than $1,000 through a low-value pool. You calculate decline in value of depreciating assets in a low-value pool using a diminishing value rate.

Where you use your depreciating assets for both work and private purposes, you need to apportion your decline in value deduction. You can only claim the work-related portion as a deduction.

We can no longer use the COVID Shortcut Method. That finished as at 30 June 2022.

4. ATO DATA MATCHING – Big Brother is Watching

The Australian Taxation Office (ATO) has announced that it is expanding it’s data matching program. ATO has been using 3rd party data for many years for things like employment income and interest earnings.

ATO are now expanding their data matching into the following areas:

    • rental property deductions

    • sharing economy income

    • cryptocurrency transactions

    • Income protection insurance premiums

ATO assistant commissioner Tim Loh said the expanded capabilities will leave the Tax Office clear on which individuals are being genuine and which are trying to get away with providing fallacious data. 

“This isn’t a game of Guess Who, as our sophisticated data matching programs provide us with all the clues we need to track down taxpayers with incorrect information in their tax return,” said Mr Loh. 

“We will use this information to identify and educate taxpayers who have made incorrect claims in their return, with a longer-term plan to pre-fill as much information as possible in future years.” 

The ATO said while nine in 10 rental property owners were getting their returns wrong, the additional data matching capability of investment loan data and landlord insurance policy information should see a marked improvement. 

ATO will get transaction level investment loan statement data. This will allow them to not only add up the interest deduction but also see any personal loan redraws that would reduce the deductibility of any interest. You can’t redraw to buy a car and keep claiming 100% of the interest.

ATO Assistant Commissioner Tim Loh said the ATO is continuing to prioritise areas where we often see mistakes being made.


The Federal Government and ATO have removed a tax offset that previously boosted tax refunds. The Low and Middle Income Tax Offset (LMITO) has been discontinued so your refund could be up to $1500 worse off if your tax situation is exactly the same as the previous year. You may even end up with a tax bill.

Your tax return outcome may change for any of the following reasons:

    • A tax offset you received previously is no longer available or you are no longer eligible for an offset – for example, the low and middle income tax offset ended on 30 June 2022.

    • Your income or deductions for the income year are different from previous income years.

    • We find a difference between the details in your tax return and the information we receive through pre-fill data or our data matching program.

    • You have not advised your employer of your study or training support loan and your income is above the minimum repayment threshold and you have a compulsory repayment amount.

Some debts will not be applied to your tax return until after it is lodged. This means your tax estimate in may not match your final tax outcome. We do endeavour to check this before we lodge.

If you believe you will get a tax bill, it’s still important to lodge your tax return on time even if you can’t pay immediately. You can negotiate a payment plan with ATO to repay unexpected tax debts over a year or two.

To understand why you owe tax, see why you may receive a tax bill.


The ATO have announced 3 key focus areas for tax time 2023:

    • Rental Property Deductions

    • Work Related Expenses: Avoid the “Copy & Paste”

    • Capital Gains Tax

Rental Property Deductions

The ATO’s review of income tax returns show 9 in 10 rental property owners are getting their return wrong, and often sees rental income being left out, or mistakes being made with property related deductions – like overclaiming expenses or claiming for improvements to private properties.

The ATO is particularly focused on interest expenses and ensuring rental property owners understand how to correctly apportion loan interest expenses where part of the loan was used for private purposes (or the loan was re-financed with some private purpose).

‘You can only claim interest on a loan used to purchase a rental property to earn rental income – don’t forget, if your loan also includes a private expense, such as for a new car or a trip to Bali, you can only claim an interest deduction for the portion relating to producing your rental income,’ Mr Loh said.

The ATO has sophisticated data matching capabilities which include rental property-related data and has recently implemented a new residential investment property loans data matching program.

‘This is just one example of the work we are doing to help you get your return right and make sure people are claiming expenses correctly,’ Mr Loh said.

Work Related Expenses: Avoid the “Copy & Paste”

ATO are cracking down on those who take a “same as last year” approach. Some things will be similar or the same but you need to still cover the 3 basic rules of tax deductions:

    1. You must have spent the money, and not been reimbursed

    1. The item must be related to you earning your income

    1. You must have records to prove the expense was incurred (a receipt or invoice)

Tim Loh, from ATO said ‘We continue to see shifts in the way Aussies are working, and it’s important to consider whether your claims reflect your working arrangements this year.’

‘There have also been some changes in how you calculate things like working from home deductions, so don’t be tempted to just copy and paste your prior year’s claims. We know a lot of people are working back in the office more compared to last year,’ Mr Loh said.

This year, the ATO is particularly focused on ensuring taxpayers understand the changes to the working from home methods and are able to back up their claims.

Capital Gain Tax: Have you considered ALL assets?

Capital gains tax (CGT) comes about when you dispose of a capital asset such as shares, property or cryptocurrency. To meet your tax obligations you need to declare your capital gain or loss in your tax return.

Generally your main residence is CGT exempt, unless you have used it to produce income, such as renting part or all of the house out on Airbnb, Stayz or privately. Accurate records must be kept to apportion the exempt time vs the income producing time.

Want to discuss your tax return needs with our team? Hit BOOK NOW above.

ATO Small Business Technology Boost: A Guide to Deductions

Boost Your Small Business: We explain how to get an extra 20% deduction for your business spend on technology items


  1. You must be a Small Business – ie. turnover less than $50million per year
  2. Eligible Expenses include:
    • Computer hardware
    • e-commerce services and subscriptions such as cloud based services
    • cyber security services
  3. TIMING – must incure the costs between 7:30 pm AEDT 29 March 2022 and 30 June 2023.
  4. GET ADVICE: Contact your Accountant now to discuss before the timeframe expires.
  5. EXAMPLE: Scroll down to see a worked example




In today’s fast-paced digital era, small businesses need to stay competitive by embracing technology. The Federal Government has finally approved legislation to enact the Small Business Technology Investment Boost, provided by the Australian Taxation Office (ATO).

In this blog post, we’ll explore how this program can benefit your small business and how to leverage it to maximize deductions.

Understanding the Small Business Technology Investment Boost:

The Small Business Technology Investment Boost is an Australian government program aimed at encouraging small businesses to invest in technology. It offers an extra 20% tax deduction for eligible assets purchased and installed within the specified timeframe. By leveraging this boost, small businesses can enhance their operations, improve productivity, and gain a competitive edge.

Eligibility Criteria:

To qualify for the Small Business Technology Investment Boost, your business must meet the following criteria:

  1. SMALL BUSIENSS – your business must have an aggregated annual turnover of less than $50 million
  2. EXPENSE – Must already be a deductible expense for your business under taxation law
  3. ELIGIBLE EXPENSE – Must be for business items
    • digital enabling items – computer and telecommunications hardware and equipment, software, internet costs, systems and services that form and facilitate the use of computer networks
    • digital media and marketing – audio and visual content that can be created, accessed, stored or viewed on digital devices, including web page design, video, podcasts etc.
    • e-commerce – goods or services supporting digitally ordered or platform-enabled online transactions, portable payment devices, digital inventory management, subscriptions to cloud-based services, and advice on digital operations or digitising operations, such as advice about digital tools to support business continuity and growth
    • cyber security – cyber security systems, backup management and monitoring services.
  4. TIMING – Eligible expenses must be incurred between 7:30 pm AEDT 29 March 2022 and 30 June 2023.


You will note that this law is retrospective, covering expenses from 7:30 pm AEDT 29 March 2022 to 30 June 2023 despite only being legislated on 22 June 2023.

This means you will need to trawl back through past spending to capture eligible expenses

Qualifying Assets:

The program covers a wide range of technology assets that can help improve your business processes. Some examples of eligible assets include computer hardware, software, printers, scanners, and digital tools. It’s essential to ensure that the assets you plan to invest in align with the ATO’s guidelines to claim the tax deductions successfully.

Claiming Deductions:

To claim deductions under the Small Business Technology Investment Boost, you must adhere to the ATO’s instructions and guidelines. It is important to keep proper records of your technology investments, including invoices, receipts, and any relevant documentation. Your tax advisor can provide detailed guidance on how to correctly claim these deductions and maximize your tax benefits.

IMPORTANT NOTE: All eligible spends are claimed in the 2023 business tax return despite teh time frame stretching back 3 months into the 2022 income tax year (29 Mar 22 – 30 June 22).

Example of the Small Business Technology Investment Boost:

Let’s consider an example to illustrate how the Small Business Technology Investment Boost can benefit your business.

Suppose you own a small graphic design agency with an aggregated annual turnover of $30 million. You are a small business ✅

In November 2022, to keep up with the latest design software and hardware, you invested $20,000 in new computers, graphic tablets, and design software licenses.

  • These items are normal deductions to your business ✅
  • This is also within the time frame for eligibility ✅
  • These are eligible digital enabling items ✅

This spend would normally be a 100% tax deduction assuming no private usage of these items.

By taking advantage of the Small Business Technology Investment Boost, you can claim an EXTRA 20% tax deduction in your business tax return. $20,000 x 20% = $4000.

This deduction can significantly reduce your taxable income, resulting in lower tax obligations and more funds available for further business growth.

Assuming you operate a company structure you would save $4000 x 25% company tax rate = $1000.00


The Small Business Technology Investment Boost offered by the Australian Taxation Office presents a valuable opportunity for small businesses to invest in technology and improve their operations. By understanding the eligibility criteria, investing in qualifying assets, and correctly claiming deductions, small businesses can leverage this program to maximize their tax benefits. Be sure to consult with a tax advisor to ensure compliance with all the necessary requirements. Embrace the power of technology and propel your small business towards success in today’s competitive landscape.