The crunch of Covid-19 has brought good news for Australian taxpayers. They will now get greater amounts of tax returns on various purposes. Some experts are hoping that Covid-19 will be financially advantageous for Australian citizens this year. The major reasons which have contributed to these increase figures of the tax return are given below.
Fixed-Rate Deductions for WFH employees
Tens and thousands of Australians are working from home as a result of Coronavirus. That’s why the ATO has declared a special tax return provision for them. According to this, you can claim flat deductions on any item which you needed to work. Following are the items which you can claim your deductions on:
Rather than calculating each of the costs individually, the ATO has recommended an easy and simple method. This allows you to claim 80 cents per working hour. The worker must also belong to a dedicated working area with all necessary arrangements. Multiple members working from the same home can also claim these deductions.
When you cannot claim?
There are certain circumstances that won’t let you claim the sum of 80 cents per working hour. Some of these include:
Remember that the ATO will simultaneously allow you to use the previous method of calculation of your work proportion. This includes the method of the proportion of use and depreciation, depending on your personal choice.
Australians to expect reduced work hours
Australian workers can also expect reduced working hours as a result of the Covid-19 crunch. The decline in the number of jobs has led to lesser working hours per year for Australian workers. So, you can expect to get more tax deductions from your employer than before. You can evaluate these tax deductions quite simply with a simple calculating gadget offered by the ATO.
Things which you cannot claim
According to ATO’s new taxing protocol, there certain things on which you cannot claim your tax deductions. This rule is applicable to both people belonging and not belonging to a dedicated working area. These include certain household items and occupancy costs including
While making these claims, be aware of the negative repercussion of capital gains tax as well, experts say. This has been stated by the ATO as per the latest reports. Australian businesses that are planning to sell their properties can get a specific portion deducted by the ATO for this.
Some special claimable deductions
There are also some special deductions that you can claim based upon certain purposes. These include claiming 66 cents per km on driving your car. Despite this, you are allowed to drive within your home till your office at the most. As a WFH employee, you can also claim the amount of 80 cents per working hour to meet the costs of some purposes. These again include light fitting charges, curtain charges, charges to restore torn and scruffy carpets, etc.
SCOMO’s $1,080 relief plan
Scott Morrison’s government’s tax offset sector is giving a relief aid of $1,080 to affected workers. This has been a positive result due to ATO’s new increased tax return schemes. This will depend on how much is your total annual income. You will receive the whole amount of $1,080 if your income is within $37,000 to $126,000. On the contrary, if your total income is less than $37,000, then you will receive $225 and not more.
Get professional assistance!
For more information and help on such matters, get the finest assistance from Tax Accountant Perth at Tax Return Perth.