With the end of the financial year fast approaching, there are some important considerations to keep in mind when reviewing your tax planning strategies for 2023.

Trust Distributions

The ATO has recently released guidance on its compliance approach and views on the tax treatment of income distributions from family trusts.

In particular, it is proposing to take a stricter view on income distributions made to low-income taxpayers where other family members benefit from the trusts’ funds.

It will therefore be crucial to review trust distributions for 2023 to minimise the risk of ATO review.

Superannuation Contributions

The concessional contributions cap for 2023 remains at $27,500.

For those with superannuation balances below $500,000, unused concessional caps from prior years can be applied as carry forward concessional contributions.

A review of prior years may assist in maximising tax deductions for superannuation contributions and increasing superannuation balances.

Instant Asset Write-Off and Temporary Full Expensing

The instant asset write-off and temporary full expensing has not yet been extended and is due to come to an end on 30 June 2023.

Businesses looking to invest in plant and equipment assets should consider bringing forward these purchases to ensure they are installed, delivered and ready for use by 30 June.