Well, it’s safe to say that no business owner could have possibly predicted what 2020 had in store for them!
After devastating bush fires and now the Coronavirus pandemic, the economy has certainly taken a hit. Small business owners and their workers have been greatly affected over the last few months. We encourage all of our business clients to apply for as many Government concessions, payments, reimbursements and subsidies that are available to them. The Government has made many announcements over the last few weeks so there certainly is a lot of information to wrap your head around – please contact us for a consultation (we also offer phone and video consultations) to discuss what your business is eligible for.
We also ask kindly to respect our response times as we are busier than ever assisting clients in need and wrapping our own heads around the new legislation that is being passed. Most of all, we want to say that we are here for you and hope that you trust us as your advisor during this hard time – we only want to see your business flourish!
Monthly tax tip:
The ATO has announced a new and easier method for claiming home office expenses due to the increase of people working from home due to the COVID-19 lockdown. Workers will now be able to claim hours worked in their home at a rate of 80 cents per hour. This method will cover all home office expenses from 1st of March 2020. If a person worked from home prior to this date then the usual method of claiming home office expenses would be used. However, you can still choose to use the pre-existing method after March if you prefer to do so or it will result in a higher claim. Examples of the two different methods are listed below:
Hours spent working at home (this covers electricity and home office furniture) = 456 hours x 52 cents per hour = $237.12
Home internet – 60% for work purposes = $162
Mobile phone – 40% for work purposes = $84
Depreciation of laptop – 70% for work purposes = $116
Total claim = $599.12
Hours spent working at home (this covers all home office expenses) = 456 hours x 80 cents per hour = $364.80
As seen in the above calculations, in this instance the pre-existing method will result in a higher claim. We recommend that if you are working from home then you keep records of all hours spent in your home office as well as receipts for home office expenses. This will allow you to then compare which method will be best to claim at tax time.
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.