JobKeeper has been a hot topic for small business employers and sole traders over the last year with many businesses receiving this assistance to enable them to continue to employ and trade as usual. The ATO are currently processing the last round of this payment scheme with March being the last month of the wage subsidy. Although JobKeeper has been extremely helpful and very much needed to many small business owners, the Government will have to cut this financial help eventually with the countries budget being exceeded. Businesses will have to adjust to the end of JobKeeper as well as other previous payments and subsidies being received after the affects of COVID-19 (cash-flow boosts, apprentice subsidies, etc.) and this may become a sore spot for businesses that have limited cash-flow and poor forecasting.

Now is the time for small business owners to sit down and look at their financial position, adjust their budget and prepare for a decrease in cash-flow once all final subsidies and payments have been received.

If you are unsure where to start with your budget or cash-flow forecast and require advice or assistance to keep your business on track and trading then please contact our office for an appointment (phone appointments are available).

We mentioned in our January newsletter that the shortcut method for home office expenses (80 cents per hour working from home between 1 March and 31 December 2020) had ended. Since then, the ATO have announced that this method of claiming home office expenses has been extended until 30 June 2021 since COVID-19 cases rose. This means that if you work from home during these dates at any point during your employment (or when carrying on a business) then you can claim this easy method.

However, please ensure that you are keeping good records of the hours spent in your home office (e.g. timesheets, work diary entries). The ATO will most likely see a jump in home office expense claims this financial year with many taxpayers working from home. It is highly likely that these claims will become an ATO audit target over the next few years so we do recommend that you speak with your tax adviser to calculate the best claim for you and to ensure that you are claiming this expense correctly.

If you would like to schedule a consultation with us then please jump onto our website where you can see our availabilities and book a time that suits you.