Happy New Financial Year

It’s Tax Time again. The 2020 financial year has come to an end and it’s time for you to complete this year’s Income Tax Return.

Every year about this time, the Australian Taxation Office (ATO) announces it's hotspot for the year ahead. Essentially, the ATO will again be focussing on Work-related expenses.

The ATO has detailed the work-related expenses deductions that it will be paying close attention to this year, in light of COVID-19. With more people working from home, working reduced hours or unfortunately not working at all, the ATO expect to see claims for laundry expenses or travel expenses decline this year.

The ATO also expects to see a substantial increase in people claiming deductions for working from home as a result of COVID-19 restrictions. A new shortcut method has been introduced by the ATO for taxpayers to calculate home office expenses at a rate of 80 cents per hour for the period between 1 March and 30 June 2020.

From a work-related expenses perspective, it is still important to meet the three golden rules:

  • You must have spent the money yourself and weren't reimbursed,

  • The expense must be directly related to earning your income,

  • You must have a record to prove the expense.​

Another area of focus for the ATO is on claims in relation to investment properties and holiday homes. The ATO will focus on:

  • Excessive interest expense claims.

  • Incorrect apportionment of rental income and expenses between owners

  • Incorrectly claiming deductions for capital expenses, such as such as legal costs associated with buying and selling a property and property improvements

  • Holiday homes that are not genuinely available for rent. Rental property owners should only claim for the periods the property is rented out or is genuinely available for rent. Periods of personal use can’t be claimed.

The key tip is to ensure you keep good records. The golden rule is; if you cannot substantiate it, you can’t claim it, so it’s essential to keep invoices, receipts and bank statements for all property expenditure, as well as proof that the property was available for rent, such as rental listings.


Don't be too eager

The ATO has also suggested that taxpayers should not be too eager to get their tax refunds this year and ensure that all their information is accurate before lodging their 2020 income tax returns. The ATO expects to start processing tax refunds in the week ending 19 July. According to the ATO, your employment income statement (formally known as PAYG Payment Summary and Group Certificate) may not be finalised until 31 July 2020. We will commence 2020 income tax return preparation appointments in the week ending 18 July 2020.

There for you

At National Taxation, we're great listeners and we know that every single one of our clients are unique. We have a proven track record and are well equipped with the latest knowledge to ensure that your Income Tax Return is prepared in the most professional manner, at a reasonable cost. Our objective is always to maximise your TAX REFUND.

Get Ready

For your convenience, please find below a link to our 2020 Individual taxation checklist, Small Business taxation checklist and a general list of potential tax deductions that may be relevant to you. To assist in preparing your 2020 Income Tax return, you may want to review these checklists. Click here to download

Time to meet

In order to protect your safety, all appointments will be conducted by web chat and/or telephone, until 30 September 2020. Please click of the following link to arrange an appropriate time to complete your 2020 Income Tax Return. 2020 tax time appointment

We look forward to being of service to you.

Disclaimer

The information presented is general in nature and not to be used, relied or acted upon without seeking professional advice to ensure that the information appropriate for your individual circumstances. National Taxation accepts no liability for any errors or omissions, or for any loss or damage suffered as a result of any person acting without such advice. www.nationaltaxation.com.au. ABN 63 665 545 130.

#EOFY #TaxTime #2020FinancialYear #Workrelatedexpenses #Investmentpropertyowners

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