We know that the End of the Financial Year always brings questions for those who need to file, and those questions become more complex when you're a global business.
With that in mind, this article will act as your living, breathing guide to the End of Financial Year 2023, covering various topics like key dates for filing, any changes to tax legislation you need to know about, and information about specific benefits you may be entitled to.
However, before starting, we need to stress that this guide should not be taken as legal advice. This article is aimed to provide you with information to be aware of when consulting with a qualified tax agent about your Australian tax obligations.
Some considerations for filing
Before filing, companies should have a few things on their radar. For example, the Australian Taxation Office (ATO) sets Goods and Services Tax (GST) reporting and payment cycles based on the GST turnover of a company.
Therefore, if your GST turnover is less than AUD $20 million and the ATO has not told you to report monthly, you should be reporting quarterly. Likewise, you should report monthly if your GST turnover is AUD $20 million or more.
Additionally, you can report annually if you are voluntarily registered for GST and your GST turnover is under AUD $75,000 (or AUD $150,000 for not-for-profit bodies).
Key dates in 2023
Keeping track of Australia's key dates for filing taxes is crucial for maintaining your business' cash flow. Here are some important dates to mark in your calendar:
Company tax returns due for the previous financial year (if not done through an agent).
End of the Family Tax Benefit year, where eligible Australians can request government financial assistance for raising children.
- If you use a tax agent, individual income tax returns are due for lodgement. This deadline is for the 2021/2022 tax year, almost a full year after the closure of the last tax year.
- Company income tax returns are also due for lodgement and payment. Again, this deadline is for the 2021/2022 tax year.
- Partnership & Trust income tax returns are due for lodgement for the 2021/2022 tax year.
To file any of the above for the 2022/2023 financial year, it would be a date in 2024.Check on the ATO website closer to the time, as information for 2024 dates is not currently available at the time of publishing.
- Lodge and pay April Business Activity Statement (BAS) if you lodge and pay monthly for things like GST and other taxes to ATO.
- Fringe Benefits Tax return due by this date if you lodge by paper.
The Fringe Benefits Tax return is due by today if you lodge electronically.
Lodge tax return for all entities with a lodgment due date of 15 May for the 2022/2023 financial year, if the tax return is not required earlier, and if both the below criteria are met:
- Non-taxable or a credit assessment in the latest year lodged.
- Non-taxable or receiving a credit assessment in the current year.
This deadline includes companies and super funds but excludes large and medium taxpayers and head companies of consolidated groups. Lodge tax returns are due for individuals and trusts with a lodgment date of 15 May 2023, provided they also pay any liability by this date.
Lodge and pay May 2023 monthly business activity statement.
Lodge and pay the 2023 Fringe Benefits Tax annual return for agents if lodging electronically.
To qualify for a tax deduction in the 2022/2023 financial year, super guarantee contributions must be paid by this date.
Please note if a tax lodgement or payment due date falls on a weekend or public holiday, the ATO will give you until the next business day.
Open a World Account for free
- Open up to 10 local currency accounts, with local account numbers
- Collect secure payments from 100+ marketplaces, overseas buyers and payment processing gateways
- Pay suppliers, partners and staff in 40 currencies without hidden fees
- Pay and get paid easily with local bank details on your invoices
- Lock in conversion rates to manage your currency risk
What is the tax-free threshold in Australia for 2023?
The nominal tax-free threshold for 2023 is the income a person can earn without paying income tax. It currently stands at AUD $18,200. The effective tax-free threshold (which considers the low-income tax offset) is AUD $21,885.
Checklist for the End of Financial Year 2023
As a business operating in Australia, here is a list of essential admin tasks you must complete to maintain tax compliance:
- Create a Profit and loss statement
- Perform a stocktake
- Generate summaries of records of debtors and creditors
- Maintain records of asset purchases or expenditures on improvements
- Complete and lodge income tax returns
- Know about tax types, including PAYG withholding, fringe benefits tax, and goods and services tax
- Meet superannuation requirements It’s smart to have digital copies of paper records and vice versa to ensure all this vital information is safely stored and backed up.
What deductions and concessions can I claim?
We have previously written a guide to some of the Australian tax deductions and concessions you can claim on your tax bill. However, you should also check with a qualified tax agent to confirm what you may be eligible for. In summary, businesses can claim deductions if they have done the following:
- Have motor vehicle expenses
- Set up a website
- Operate at home
- Use diesel fuel
- Have travel expenses
- Use machinery, tools, or computers
Please note, you must have records to prove the expenses in the event the ATO audits your company. Failure to substantiate a claim with the correct paperwork could result in a fine.
Are there any changes this year?
Keep up to date with the key changes to company tax rate law on the ATO website. Here is a quick rundown of some amendments to be aware of:
- The temporary full expensing tax incentive for businesses impacted by COVID-19 has been extended to 30 June 2023.
- Changes to how tax offset is calculated, expenditure thresholds and specific integrity measures have been enacted to the research and development (R&D) tax incentive.
- Changes to Australia's Offshore Banking Unit Regime mean that from the 2023/2024 income year, the government will discontinue providing OBUs with a favourable tax status for their offshore banking activities.
You can also check ATO's Small Business Newsroom for new developments.
Integrate your World Account to Xero for better bookkeeping
The World Account from WorldFirst is designed to make doing business abroad easier, especially when paying in multiple currencies like AUD, USD and GBP.
You can make fast and secure FX transfers in over ten different currencies, ensuring that your tax obligations overseas are handled seamlessly.
You can also integrate your World Account to Xero accounting tools, making account reconciliation and bookkeeping a breeze, no matter where you're operating in the world.
If you want to learn more about opening a free World Account, click here. Or call one of our friendly team on +61 2 8298 4990, and we'll be happy to help.
Disclaimer: These comments are the views and opinions of the author and should not be construed as advice. You should act using your own information and judgement. Whilst information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. Please consider FX derivatives are high risk, provide volatile returns and do not guarantee profits.
Businesses trust WorldFirst
- Almost 1,000,000 businesses have sent $150B around the world with WorldFirst and its partner brands since 2004
- Your money is safeguarded with leading financial institutions