2023 Tax Changes - Deductions and Refunds

2023 Tax Offset Changes

For the 2023 tax year, the low and middle income offset has been abolished. In previous years, the maximum offset was $1500. As a result, low to middle income earners may see their tax refunds for the 2023 financial year and beyond reduce by between $675 and $1,500.

The low-income offset is still available to low-income earners for the 2023 year. The maximum amount available is $700.

Please be aware that, unfortunately, your refunds will be lower than previous years.

2023 Work From Home changes

From March 1 2023 there are changes to the work from home deduction. The changes are listed below:

• The fixed rate changes from $0.52/hour to $0.67/hour
• You can no longer claim internet, mobile phone, computer consumables and stationery. These expenses are taken up in the fixed rate
• You can claim a separate deduction for depreciation of assets, repair of the assets and cleaning (if you have a dedicated home office)

From March 1 2023 you will be required to keep a record of ALL the hours you work from home for the entire year and evidence you paid for the expenses covered by the fixed rate.

For July 1 2022 to February 28 2023 you still need to be able to provide a 4 week representative diary for hours worked.