What’s new for individuals tax

Before you complete your tax return for 2022‚Äď23, find out what‚Äôs new and any changes that may affect you.

Working from home deduction changes

The fixed rate method for calculating your deduction for working from home expenses has been revised. The revised fixed rate method allows you to claim 67 cents per work hour and available from 1 July 2022.

The fixed rate method has been revised to:

  • increase the rate per work hour that you can claim when you work from home
  • change the expenses the rate covers
  • change the¬†record keeping requirements
  • remove the requirement to have a dedicated home office set aside for work.

You can also separately claim a decline in value deduction for the work-related use of depreciating assets such as office furniture and technology.

If you don’t use the revised fixed rate method, you need to use the actual cost method. You can no longer use the shortcut method, this method ended 30 June 2022.

If you are working out your claim for working from home expenses for 2021‚Äď22 or earlier income years, see¬†Prior year work from home methods.

Changes to your tax return outcome in 2023

The outcome of your tax return for 2022‚Äď23 may be different than in previous income years. You may have a lower refund or you may receive a tax bill.

Your tax return outcome may change for a number of reasons. For example, the low and middle income tax offset (LMITO) ended 30 June 2022, it doesn’t apply this tax time. For more on how this and other circumstances affect the outcome of your tax return, see Why your tax return outcome may change in 2023.

If you receive a tax bill and are unable to pay on time, we can help. Find out what to do if you have a tax bill.

Cents per kilometre rate change

From 1 July 2022, the cents per kilometre rate for work-related car expenses is 78c.

Use this rate to calculate and claim your work-related car expenses in your tax return for 2022‚Äď23 if you are using the cents per kilometre rate.

Self-education deduction change

Before 1 July 2022, you were generally required to reduce your allowable self-education expenses by $250 to calculate your deduction.

From 1 July 2022, if you’re claiming a deduction for self-education expenses:

  • you no longer need to reduce your allowable expenses by $250
  • you can claim a deduction for all allowable self-education expenses.

You must continue to keep records of your self-education expenses.

High-Risk Settings Pandemic Payment

The Australian Government provided support for individuals who tested positive for COVID-19 and couldn’t earn income because they worked in a high-risk setting. A high-risk setting was classed as any of the following that involved frequent close contact:

  • aged care, including home care with close personal care and support services
  • disability care, including home care with close personal care and support services
  • Aboriginal healthcare, including workers employed by National Aboriginal Community Controlled Health Organisations (NACCHOs), community health care, Aboriginal drug and alcohol services and support services
  • hospital care, including day hospitals and smaller facilities, paramedical, ambulance, patient transport and support.

For claims submitted to Services Australia from 11 November 2022, a high-risk setting also included custodial settings, such as prison, youth justice and secure welfare services.

This is a taxable payment, and you need to manually report this income in your tax return.

This payment will not show on your Centrelink payment summaryExternal Link and will not prefill into your tax return. You can check the amount received:

  • in the Payment history section of your Centrelink online account
  • in Centrelink letters you received online or in the post
  • by contacting Services Australia.

Completing your tax return

Enter the amount you receive at one of the following:

  • Australian Government special payments¬†if you lodge online using myTax
  • Question 24 Other income¬†if you lodge by paper
  • Question 24V¬†or add the¬†Income Details schedule¬†at field¬†Australian Government benefit taxable amount¬†(INCDTLS128), with field¬†Australian Government benefit type¬†(INCDTLS126) set to¬†Special¬†if you‚Äôre a registered tax professional.

For more information about these payments, see¬†Services Australia ‚Äď High-Risk Settings Pandemic PaymentExternal Link.

Cost of Living Payment

The Cost of Living PaymentExternal Link is a $250 one-off payment to help with the cost of living. Services Australia began distributing this payment to eligible individuals in April 2022.

The Cost of Living Payment is non-assessable non-exempt (NANE) income. This means it is a non-taxable payment and you don’t need to include it in your tax return.

Disaster payments and grants

If you are affected by a natural disaster, you may have received a relief payment from:

  • local, state or federal government agencies
  • a charity or community group
  • your employer.

Some payments are non-assessable non-exempt (NANE) income. This means it is a non-taxable payment and you don’t need to include it in your tax return.

If you have carried forward losses from an earlier income year, you will need to reduce that amount by any exempt income.

For payments you receive from a local, state or federal government agency, you need to understand what type of payment it is and how it affects your tax. You may need to include the following payments in your tax return, although you may not pay tax on them.

To find out if the payment you receive is tax free, tax exempt, NANE income or taxable and if you need to include it in your tax return, see Reporting disaster payments and grants in your tax return.

Territories Stolen Generations Redress Scheme

The Territories Stolen Generations Redress SchemeExternal Link is administered by the National Indigenous Australians Agency. The Scheme is for survivors of the Stolen Generations who were removed as children from their families whilst in the Northern Territory or the Australian Capital Territory (prior to their respective self-government) or the Jervis Bay Territory.

The Scheme is a financial and wellbeing package that opened on 1 March 2022 and will close on 30 June 2026. You can apply anytime between 1 March 2022 and 28 February 2026.

The Territories Stolen Generations Redress scheme payments are non-assessable non-exempt (NANE) income. This means it is a non-taxable payment and you don’t need to include it in your tax return.

Medicare levy thresholds

From 1 July 2022, the low-income thresholds for the Medicare levy have been adjusted in line with the consumer price index (CPI). For more information see Medicare levy reduction for low income earners.

Removing the $450 threshold for super guarantee eligibility

Before 1 July 2022, your employer did not have to pay super guarantee if you were earning less than $450 a month. The $450 per month threshold for super guarantee has been removed.

Your employer must pay super guarantee for eligible employees regardless of your earnings, see Am I entitled to super?.

If you’re under 18 years old, you’ll still need to work more than 30 hours in a week to be eligible for super.

You can use our Estimate my super tool to calculate how much super your employer should have paid.

Personal super contribution amounts added to ATO online services

There are limits on how much you can pay into your super fund each income year without having to pay extra tax. These limits are called ‚Äėcontribution caps‚Äô.

If you contribute to super and you want to stay under the contribution caps, you’ll now be able to easily. You can view your personal super contribution amounts in ATO online services. The new non-concessional contributions, concessional contributions and carry forward screens will display up to 5 years of contributions data.

Downsizer contributions

The age an eligible individual can make a downsizer contribution to their superannuation has changed.

If you have reached the eligible age, you (each individual) may be able to contribute up to $300,000 from the proceeds of the sale (or part sale) of your home into your superannuation fund.

To make a downsizer contribution; the eligible age is as follows:

  • From 1¬†January 2023, 55¬†years old or older
  • From 1¬†July 2022, 60¬†years old or older
  • From 1¬†July 2018, 65¬†years old or older.

For the full eligibility criteria and other details, see Downsizer contributions for individuals.

Military invalidity pension payments

If you receive invalidity pension payments that are affected by the Douglas court decision, they are treated as superannuation lump sum payments. Include your payment amount at Australian superannuation lump sum payments in your tax return.

If your invalidity pension payments are not affected by the Douglas decision, they are taxed as superannuation income stream benefits. Include these payments at Australian annuities and superannuation income streams in your tax return.

Veterans’ super (invalidity pension) tax offset

The veterans‚Äô superannuation (invalidity pension) tax offset (VSTO) is a non-refundable tax offset. This tax offset ensures veterans and their beneficiaries don‚Äôt pay more tax because of the¬†Douglas court decision. It applies from the 2007‚Äď08 income year.

You don’t need to apply for the VSTO. We will work out if you are entitled to a VSTO amount after you lodge your tax return.

To check your eligibility for the tax offset, see Veterans’ superannuation (invalidity pension) tax offset.

Last modified: 24 Jun 2023QC 32093

https://www.ato.gov.au/Individuals/Your-tax-return/Before-you-prepare-your-tax-return/What-s-new-for-individuals/

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