Simplified home office expense deduction claims due to COVID-19
Update to ATO home office expense deduction claims Given that many Australians continue to work from home due to COVID-19, the ATO has updated its Practical Compliance Guideline. The Practical Compliance Guideline now allows taxpayers working from home to claim a rate of 80 cents per hour, by keeping a record of the number of […]
Tax cuts pass Parliament
The Government announced various tax measures in the 2020 Budget It was able to secure passage of legislation containing some of the important measures very shortly afterwards, as summarised below. Tax relief for individuals The Government brought forward ‘Stage two’ of their Personal Income Tax Plan by two years, so that, from 1 July 2020: […]
Tax deductions for work-related vehicles
Deduction for work-related vehicle expenses disallowed In a decision of the Administrative Appeals Tribunal, a taxpayer, Mr Bell, was a denied a deduction for $21,565.73 of work-related vehicle expenses for the 2016 income year. Mr Bell, was a construction worker who predominantly worked on a construction site in an eastern suburb of Melbourne and lived […]
Superannuation guarantee amnesty ends today
Super Guarantee Amnesty Update Time runs out today for employers to apply for the Superannuation Guarantee (SG) amnesty to catch up on past unpaid super without incurring a penalty. The ATO encourages employers to apply for the amnesty and make payments as early as they can. Importantly, eligible amnesty amounts paid by 7 September 2020 […]
80c per hour ‘shortcut’ method for home office expenses extended
Work-related expenses Back in April 2020 the ATO announced that a ‘shortcut’ method was to be made available to use from 1 March 2020 until 30 June 2020 for individuals claiming home office expenses due to COVID-19. The ATO recently announced an extension of this shortcut method to also include 1 July 2020 to 30 […]
Extending the Instant Asset Write-Off
Treasury Laws Amendment (2020 Measures No 3) Bill 2020 Treasury Laws Amendment (2020 Measures No 3) Bill 2020 has passed both Houses of Parliament and is now law. Extending the Instant Asset Write-Off This legislation amends the income tax law to allow a business with an aggregated turnover for the income year of less than […]
OMNIBUSiness Tax Planning Edition
May’s Federal Budget has been postponed but it’s still tax time. We hope that you’re well and starting to develop strategies for your business to emerge from the COVID-19 coronavirus lockdowns reinvigorated! Many of our clients have availed themselves of the opportunity of asking us to perform a wider range of duties over recent months […]
2019/20 Tax Return Checklists
Tax saving strategies prior to 1 July 2020 For Individuals A good strategy to reduce tax payable is normally to accelerate any income tax deductions into the current income year, which will reduce overall taxable income in the current year. Despite this, for the 2020 tax season, tax planning may require consideration of an individual’s […]
Shortcut method to claim deductions if working from home
As the situation around COVID-19 continues to develop, the ATO understands many employees are now working from home To make it easier when claiming a deduction for additional running costs you incur as a result of working from home, special arrangements have been announced. A simplified method has been introduced that allows you to claim […]
New vacant land tax measures
Vacant land measure limit deductibility A new ‘vacant land’ measure limits the deductibility of costs incurred on or after 1 July 2019 (i.e. from the 2020 income year) that relate to holding vacant land, even if the land in question was first held before that date. Importantly, however, the new provisions include (amongst other exceptions) […]
