With 2023 well underway now is the perfect time to get in touch so you stay on top of your tax and compliance before the year gets away from you. We offer a full suite of accounting services to assist your business so you can focus on what you do best.
Electric Cars – FBT Exemption
Which vehicles are covered?
The exemption covers zero or low emission vehicles, with values below the luxury car tax threshold for fuel efficient cars (currently $84,916), being:
- Battery electric vehicles
- Hydrogen fuel cell electric vehicles
- Plug-in hybrid electric vehicles – if the car has an internal combustion engine, it will only qualify if it can be recharged by an off-vehicle power source
- Second hand cars can qualify, but only if their first retail sale was on 1 July 2022 or later.
- Salary packaged cars qualify for the exemption in the same manner as other employer provided cars.
Private use of these cars will still result in reportable fringe benefits for employees, including for employees of not-for-profit employers. So employers will still need to perform FBT related calculations for these vehicles.
R & D Tax Incentive
The Research and Development Tax Incentive (R&DTI) offers a tax offset for companies conducting eligible R&D activities. It encourages investment in R&D to help your company to grow and innovate which generates benefits for the Australian economy.
Eligible activities are either core R&D activities or supporting R&D activities as defined in the ITAA 1997. In each year that you intend to register, you must conduct or plan to conduct at least one activity, that meets the definition of a core R&D activity.
R & D claims for the 2021/22 financial year need to be lodged by 2 May 2023.
Overview of the R&D Tax Incentive
Director’s ID
If you became a director before 31 October 2021, you were required to apply for a director ID by 30 November 2022. If you missed the deadline, you must apply for your director ID as soon as possible, as it is a criminal offence not to apply when required to do so. ATO will take a reasonable approach to directors who are trying to do the right thing, but it’s important to apply for your director ID now.
The easiest and fastest way to get your director ID is to apply online at abrs.gov.au/directorID. It’s free to apply for a director ID, and you must do it yourself – no-one can apply for a director ID on your behalf.