Find out about the key changes this tax time, our service commitment, what you can do to prepare, and things to consider before lodging. This will ensure your tax returns are correct and will prevent delays in processing.
The 2023-24 financial year starts on 1 July 2023 and ends on 30 June 2024. The financial year for tax purposes for individuals starts on 1st July and ends on 30 June of the following year.
Personal income tax rates for 2023/24 (residents)
Personal income tax rates for 2023/24 (foreign residents)
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Note: Non-residents are not liable for the Medicare levy and are not eligible for the the CGT discount on their capital gains that accrue after 8 May 2012.
Working holiday maker tax rates 2023–24
Court decision
On 3 November 2021, the High Court handed down its decision in Addy v Commissioner of Taxation in favour of the taxpayer. The Court decided that a British citizen who held a working holiday visa and was found to be an Australian resident was entitled to be taxed on the same basis as a resident Australian national and not at the working holiday maker (WHM) rates that normally apply. The circumstances in which the taxpayer was an Australian resident were unique to her case.
Who this court decision applies to
You may be taxed on the same basis as a resident Australian national if you satisfy all the following – you are:
- the holder of a visa subclass 417 Working Holiday or 462 Work and Holiday
- a resident of Australia for tax purposes for the whole or part of the income year
- from one of the following non-discrimination article (NDA) countries
- Chile
- Finland
- Germany (for 2017–18 and later income years)
- Israel (for 2020–21 and later income years)
- Japan
- Norway
- Turkey
- United Kingdom.
Low income tax offset 'LITO'
The maximum low income tax offset is $700 from the 2021, 2022, 2023 and later income years. This has been increased from $445 as a result of the 2020–21 federal budget.
If your taxable income is:
- $37,500 or less, you will get the full offset of $700
- between $37,501 and $45,000, you will get $700 minus 5 cents for every $1 above $37,500
- between $45,001 and $66,667, you will get $325 minus 1.5 cents for every $1 above $45,000.
Low and middle income tax offset 'LMITO'
(It is not available for the 2022–23 income year)
In addition to the LITO, you may also receive the low and middle income tax offset (LMITO).
As announced in the 2022–23 federal Budget, the LMITO has been increased by $420 for the 2021–22 income year. The base amount for the 2021–22 income year has increased to $675 and the full amount is $1,500.
The LMITO amount for the 2018–19, 2019–20 and 2020–21 income years remains the same at between $255 and $1,080.
If your taxable income is less than $126,000, you will get some or all of the LMITO.
The amount of offset you receive depends on your circumstances, such as your taxable income and how much tax you have paid.
The low and middle income tax offset (LMITO) ended on 30 June 2022. It is not available for the 2022–23 income year.
Small Business Company Tax Rates Schedule
2023/24 Company Income tax rate
Income category Rate (%)
Otherwise: 30%
Base rate entity company tax rate
From the 2017–18 to 2019–20 income years, companies that are base rate entities must apply the lower 27.5% company tax rate. The rate reduced to 26% in the 2020–21 income year and then 25% in the 2021–22 income year and future years.
A base rate entity is a company that both:
- has an aggregated turnover less than the aggregated turnover threshold, which is $25 million for the 2017–18 income year and $50 million from the 2018–19 income year
- 80% or less of their assessable income is base rate entity passive income – this replaces the requirement to be carrying on a business.
Base rate entity passive income is:
- corporate distributions and franking credits on these distributions
- royalties and rent
- interest income (some exceptions apply)
- gains on qualifying securities
- a net capital gain
- an amount included in the assessable income of a partner in a partnership or a beneficiary of a trust, to the extent it is traceable (either directly or indirectly) to an amount that is otherwise base rate entity passive income.
Income you need to declare
The following resources will help your client understand what income they need to declare.
Including all your income is important
When you do your tax return, you must include all the income you received during the financial year. This includes salary, wages, payments from Centrelink, business income, bank interest and other types of income.
- Income from your job
You need to report your salary and wages, as shown in your income statement. Your income statement is available via myGov and we will automatically include information from it in your return for you. Wait for your employer to mark your statement as ‘tax ready’ in myGov. This should be done by 31 July.
If you have more than one employer you may receive several income statements, or both a payment summary and an income statement. You will need to check that income from your payment summaries is included in your return.
If you lodge your tax return before your income statement is marked 'tax ready', your employer might make changes and you may need to lodge an amendment to make these changes to your return.
If you take leave, are temporarily stood down or lose your job and receive a payment from your employer, there are different tax rules that may apply for the different payments.
You need to include income protection, sickness or accident insurance payments, redundancy payments and accrued leave payments in your tax return.
If you have received access to your superannuation due to COVID-19, you will not need to pay tax on these amounts and will not need to include these amounts in your tax return.
To understand your tax situation, you need to know if you are a resident for tax purposes. Residency for tax purposes may be different to your residency status for other purposes. You may be a resident for tax purposes even if you’re not an Australian citizen or a permanent resident for immigration purposes.
(PDF, 723KB)This link will download a file
If you’re an Australian resident and you’ve derived income from overseas, you need to declare it in your Australian tax return. To determine if you’re an Australian resident for tax purposes, refer to International tax for individuals.
(PDF, 314KB)This link will download a file
Are you a ride-sourcing driver?
What you need to know about your tax obligations If you provide ride-sourcing services (sometimes referred to as ‘ride-sharing’), here’s a handy summary of your tax obligations.
(PDF, 188KB)This link will download a file
Cryptocurrency tax 2023/24
If you’ve purchased or sold cryptocurrency in the last financial year, it’s likely that your crypto investments may have an impact on your tax obligations and tax return. This is especially true if you’ve made a profit from selling or trading cryptocurrency — you’ll need to declare this on your tax return.
The ATO dictates that Bitcoin and other cryptocurrencies that share similar characteristics are not money, nor are they foreign currency.
When considering Australian Crypto Tax in 2023/24, note that the ATO classifies cryptocurrencies as property, and they are therefore treated as an asset for capital gains tax purposes. There are a number of actions that will result in the application of capital gains tax to cryptocurrency.
Cryptocurrency ‘Personal Use’ Tax Exemption
Crypto profits are not taxed if treated as ‘personal use‘ assets under the CGT rules.
Personal use assets acquired for less than $10,000 are disregarded for CGT purposes. Whether the crypto assets are personal use is determined at the time of disposal.
Similarly, small scale hobby mining can be tax free. The mere act of mining crypto is not automatically considered by the Tax Office to be a profit-making venture. When carried out on a small scale it can be simply a hobby.
We recommend using Koinly for your crypto taxes, you will be able to add all your crypto exchanges and wallets to it and it will calculate your capital gains/income automatically. Join by clicking on this link: https://koinly.io/?via=FF79D89A&utm_source=affiliate
Once you have set up your account, share access with us by going to the Settings page > Team > Invite > send the invite to info@ausmartaccountant.com.au.