Tax time will be different for most
It’s the start of a new financial year, which means it’s time to start thinking of your taxes.
With many employees having spent a portion of the year unexpectedly working from home or finding themselves unemployed, AMD Bunbury accountant Steven Florance said tax time was looking different this year for most.
“The ATO has expanded the home office claim that’s available,” Mr Florance said.
“It works on a cents per hour method which is great for those that work from home.
“Previously you could claim 52 cents per hour but because of COVID, from March 1 to June 30 they have increased the allowance to 80 cents per hour.”
Mr Florance said eligible businesses will also have the ability to claim an immediate deduction for business assets of up to $150,000.
“Businesses can claim the instant asset write-off, which has been increased to December,” he said. “Essentially it means there are significant depreciate deductions available for new equipment.”
One of the biggest changes you will notice this end of the financial year is the paperless payment summaries.
“Payment summaries are no longer a requirement of your employee, instead they are automatically uploaded to the MyGov account,” Mr Florance said.
“So if people haven’t received their payment summaries they need to get onto their MyGov account where they also have the option to lodge their return.”
However, if your tax return is a little more complicated, Mr Florance suggests visiting a tax agent.
“If you want to look at maximising your return or aren’t too comfortable lodging it online then seeing a tax agent is always a great idea,” he said.
“It’s important you keep receipts or notes on all expenses that relate to earning their income. Not all expenses are deductable but the only way you can get a deduction is if you keep your receipts.”
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