• Home Office Expenses: Due to COVID-19, ATO has allowed shortcut method to claim for home office expenses. This shortcut method ends on 30th June 2022.

• Low- & Middle-Income Tax Offset Increases: Government announced on 29 March 2022 a proposal to increase the low- and middle-income tax offset (LMITO) by $420 for the 2021–22 income year.

• Small Business Technology Investment Boost: Small businesses (with aggregated annual turnover of less than $50 million) will be able to deduct an additional 20 per cent of the cost incurred on business
expenses and depreciating assets that support their digital adoption, such as portable payment devices, cyber security systems or subscriptions to cloud-based services. An annual $100,000 cap will apply
to each qualifying income year. Businesses can continue to deduct expenditure over $100,000 under existing law.

• Super Guarantee rate increase: From 1st July 2022. Super guarantee rate increases from 10% to 10.5% and it will continue increase by 0.5% every financial year unless it reaches 12%.

• Covid -19 payments: Covid -19 disaster payment is exempt for tax purpose and pandemic leave payment is taxable.

• Downsizer Contribution age: From 1 July 2022, people aged 60 years and over will be eligible to make downsizer contributions of up to $300,000 per person ($600,000 per couple) from the sale proceeds of
their home into their super. Eligible downsizer contributions won’t impact or count towards the member’s concessional or nonconcessional super contribution caps.

• ATO focus on 2022 small business returns: The ATO announced that it will be focussing on the following matters for small business tax returns for the 2021/22 year:

• deductions that are private in nature and not related to business income, as well as overclaiming of business expenses (especially for taxpayers running a home-based business);

• omission of business income (e.g., income from the sharing economy or new business ventures);

• and record keeping (including insufficient or non-existent records that are needed to substantiate claims).

• Effective Life of Depreciating Assets: The ATO has issued its annual taxation ruling on the effective life of depreciating assets, which takes effect from 1 July 2022 (TR 2022/1).

• Luxury car Threshold: The ATO has updated the luxury car tax (‘LCT’) thresholds for the 2022/23 financial year. The LCT threshold for fuel efficient vehicles is $84,916 in 2022/23 (up from $79,659 in 2021/22)
and the LCT threshold for other vehicles is $71,849 in 2022/23 (up from $69,152 in 2021/22