Other important changes for taxpayers and businesses

In addition to the ATO's key focus areas, there are several other important changes that taxpayers and businesses should be aware of as they prepare for end of financial year.

Low and Middle Income Tax Offset
The Low and Middle Income Tax Offset (LMITO) ended on 30 June 2022 and will not be available for the 2022–23 income year. Introduced by the former Coalition government, the LMITO was initially designed to only be paid in the 2019-20 financial year but was extended twice due to the pandemic.

Removal of the Self-Education Expenses Threshold
Before 1 July 2022, taxpayers were required to reduce their allowable work-related self-education expenses by $250 to calculate their deductions. However, starting from the 2022–23 income year, the $250 non-deductible threshold has been removed. This means that taxpayers no longer need to adjust their deductions by $250 when claiming self-education expenses. It is still important to maintain records of your deductible self-education expenses, but you no longer need to keep records of non-deductible self-education expenses that were previously offset against the $250 threshold. These changes also apply to the Fringe Benefits Tax (FBT) year starting on 1 April 2023.

Cryptocurrency investments
Regardless of whether your cryptocurrency transactions resulted in a gain or a loss, it is mandatory to report them in your tax returns.

When it comes to reporting cryptocurrency gains and losses, it is crucial to keep accurate and detailed records of all transactions. This includes information such as the date and time of each transaction, the nature of the transaction (buying, selling, or swapping), the value of the cryptocurrency at the time of the transaction, and any associated fees or charges.

It is worth noting that the ATO has been increasing its data-matching capabilities, which means they have access to information from cryptocurrency exchanges and other sources. This allows them to cross-reference the information provided in tax returns with the actual transactions that have taken place.