Four areas the ATO are cracking down on this tax season Record Keeping Work Related Expenses Rental Property Income & Deductions Capital Cains from Crypto Assets, Property and Shares It is essential you keep all your supporting documents to back up your income and deductions — invoices, receipts, bank statements, etc. The ATO can ask to see your supporting documents and if you can’t produce them the deduction could be disallowed. Work from Home The ATO has extended the working from home shortcut method. If you're an employee who works from home, you may be able to claim a deduction for expenses you incur that relate to your work. Individuals who work from home during the 2021-2022 tax-year can claim a fixed rate of $0.80 per hour worked from home. The shortcut method covers expenses such as phone expenses, internet expenses, depreciation on furniture & equipment and electricity and gas. The method is meant to make it easier for individuals to claim home office expenses. https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-youcan-claim/Working-from-home-expenses/
Employee Super From 1st July 2022 the following changes have been made by the government regarding Superannuation; • the compulsory super guarantee rate increases from 10% to 10.5% • you'll be entitled to super guarantee contributions regardless of how much you earn if you satisfy other eligibility requirements. Where there was a monthly threshold of $450 to earn super, that has now been abolished. • If you’re under 18 years old, you must work more than 30 hours per week to be entitled to super contributions. For more information visit https://www.ato.gov.au/Business/super-for-employers/work-out-if-you-haveto-pay-super/
Concessional Super Contribution Caps From 1 July 2021, the concessional contributions (additional contribution made into your super before tax) cap increased to $27,500. Please note your cap may be higher if you did not use the full amount of your cap in prior years. For more information please visit https://www.ato.gov.au/individuals/super/indetail/growing-your-super/super-contributions---too-much-can-mean-extratax/?page=2
Study and Training Loan (HECS) Repayments For the 2022 financial year if your income is less than $47,014, you will not be required to repay your study or training loan. Once over the threshold, the rate of compulsory repayment is calculated according to your income. Please note, you can make voluntary repayments at any time regardless of income. To see income repayment rates visit https://www.ato.gov.au/Rates/HELP,-TSL-andSFSS-repayment-thresholds-and-rates/
COVID-19 Disaster Payments The Australian Government provided COVID-19 Disaster Payments to individuals who were unable to earn their income because state or territory health orders prevented them working in their usual employment. If you received a COVID-19 Disaster Payment you do not need to include it in your tax return as it is a nontaxable payment.
Pandemic Leave Disaster Payments These are payments made by the Australian Government to support individuals in certain states who couldn’t earn an income because they had to self-isolate or quarantine at home, or, cared for someone with COVID-19. If you received a Pandemic Leave Disaster Payment you need to include it in your tax return as it is a taxable payment.
COVID-19 Test Expenses From the 1st July 2021, if you’re an employee, sole-trader or contractor and you pay for a COVID-19 test for work related purpose, you can claim a deduction for the work-related portion of the cost of the test. Make sure to have a receipt showing the purchase of the test and proof you were required to take the test for work purposes. For more information go to https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-youcan-claim/Other-work-related-deductions/COVID-19-test-expenses/
Exempting granny flat arrangements from capital gains tax
From 1 July 2021, a capital gains tax (CGT) exemption is available for granny flat arrangements where there is a formal written agreement. The exemption will apply to arrangements with older Australians or those with a disability. Under the changes, CGT will not apply to the creation, variation or termination of a formal written granny flat arrangement providing accommodation for older Australians or people with disabilities. This change will apply to agreements that are entered into because of family relationships or other personal ties and will not apply to commercial rental arrangements.
myGov Scam Alert Scammers have been sending emails pretending to be from myGov. These emails often begin by saying, ‘Dear myGov Customer’ and will say there’s a problem with your tax return. They threaten legal action if you don’t enter your details into a website. They may also include an attachment asking you to confirm your details. DO NOT click on any of the links or attachments. This email is a scam. Although the ATO (myGov) may send you an email they will never ask you to download attachments, ask for personal details, or, ask you to write back to emails from them.
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