Huge tax change for millions of Aussies

For an estimated 5 million Australians, the way in which they will declare main tax breaks will quickly change.

The Australian Taxation Office has introduced it has refreshed the way in which folks can declare work-related deductions later this yr.

Prior to the pandemic, individuals who labored from residence, however in a devoted workplace house, may declare 52 cents for each hour labored.

When Australia went into lockdown, the tax workplace launched a shortcut methodology the place taxpayers working from residence may declare 80 cents for every hour.

The ATO didn’t require employees to have a house workplace, nor have been they required to maintain an ongoing diary or calculations of their bills.

But from July 1, the shortcut methodology will not be obtainable.

Under the brand new system, taxpayers who do business from home can declare 67 cents per hour. The price contains cellphone and web bills, in addition to electrical energy use and stationary.

Taxpayers who have been claiming do business from home deductions through the use of the “actual cost” methodology will expertise no modifications.

Assistant Commissioner Tim Loh stated it was vital these working from residence saved a file.

“This will give you more flexibility to choose the method that gives you the best deduction at tax time depending on your circumstances,” he stated.

CPA Australia Senior supervisor tax coverage Elinor Kasapidis warned that data should be saved every day from March 1.

“A four-week diary representative of the year isn’t going to cut it. They also need to keep some records about their expenses incurred while working from home, such as copies of utility bills,” she stated.

Pre-pandemic, round two million Australians claimed working from residence deductions.

CPA Australia says this determine has jumped to about 5 million within the final three years.

Mr Loh careworn it was vital that individuals checked they have been eligible for the deductions earlier than claiming them.

“To claim your working from home expenses, you must be working from home to fulfil your employment duties, not just carrying out minimal tasks, such as occasionally checking emails or taking calls,” he stated.

“Also, you must incur additional expenses as a result of working from home.”