News - April 2019 Edition

Important:

Clients should not act solely on the basis of the material contained in this newsletter. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas.

This newsletter is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval.  

Please contact us if you wish to discuss how the points raised in this edition specifically affect you.

Claiming your “working from home”

The ATO have introduced new rules for claiming your “work from home” expenses.


In summary:

The Australian Taxation Office (ATO) is announcing special arrangements

this year due to COVID-19 to make it easier for people to claim

deductions for working from home.


The new arrangement will allow people to claim a rate of 80 cents per hour

for all their running expenses, rather than needing to calculate costs

for specific running expenses.


Multiple people living in the same house can claim this new rate. For example, a

couple living together could each individually claim the

80 cents per hour rate. The requirement to have a dedicated work from

home area has also been removed.For greater details please follow the link below.


https://www.ato.gov.au/General/COVID-19/Support-for-individuals-and-employees/Employees-working-from-home/

Coronavirus: Government announces new tax measures

The Government has announced a number of economic responses to the

Coronavirus (or 'COVID-19') pandemic, including economic stimulus

packages worth billions of dollars.


Some of the key tax measures include:


  • From Thursday 12 March 2020, the instant asset write-off threshold has been increased from $30,000 (for businesses with an aggregated turnover of less than $50 million) to $150,000 (for businesses with an aggregated turnover of less than $500 million) until 30 June 2020.
  • A time-limited 15-month investment incentive (through to 30 June 2021) which will operate to accelerate certain depreciation deductions.
  • This measure will also be available to businesses with a turnover of less than $500 million, which will be able to immediately deduct 50% of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.
  • Small and medium-sized businesses (and not-for-profit entities), with an aggregated annual turnover of less than $50 million that employ people, may be eligible to receive a total payment of up to $100,000 (with a minimum total payment of $20,000), based on their PAYG withholding obligations.
  • A new 'JobKeeper Payment' will be available to assist eligible employers (and self-employed individuals) who have been impacted by the Coronavirus pandemic to continue to pay their workers.
  • Eligible employers will be able to claim a subsidy of $1,500 per fortnight, per eligible employee, from 30 March 2020 (with payments commencing from the first week of May 2020), for a maximum period of six months.


ATO's support measures to assist those affected by COVID-19

The ATO will also implement a series of administrative measures to assist Australians experiencing financial difficulty as a result of the COVID-19 outbreak.Options available to assist businesses impacted by COVID-19 include:


  • Deferring the due dates for income tax payments, Fringe Benefits Tax payments ('FBT') and excise payments up to 12 September 2020 for businesses in financial difficulty; and
  • Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities.


However, note that employers will still need to meet their ongoing super guarantee obligations for their employees.


Please contact our office if you need any advice or assistance during this difficult time