Are you ready for June 30?
The last few months have seen everyone’s attention focused on their personal and professional wellbeing. It’s certainly been a time like no other for many of us.
As we return to a level of normalcy, the usual necessities of managing finance and business obligations will again be a priority. This becomes even more vital as we prepare for the end of the financial year.
Our team will be reaching out to clients over the coming weeks to ensure you are on track with your financial affairs, however in the meantime we’ve compiled some things to consider when preparing for tax time.
For those wishing to claim a tax deduction in the current financial year for your super payments these must be received by the fund by the 30th of June. If one day late and you will have to claim next year. Please remember to give yourself some room and aim to have these paid by the 25th of June if possible.
Major Changes to instant asset write-off
Instant asset write-offs have been extended as part of the Governments COVID-19 stimulus package. The threshold has now been increased from $30,000 to $150,000 for New or Second Hand assets first used or installed ready for use between 12 March 2020 and 30 June 2020.
Note this does not apply to capital works expenses such as new buildings.
Working from home – what can you claim
Many of us have been working from home during the pandemic, and for some this may continue in a more regular way going forward. To maximise your deductions you should understand what you can claim.
Expenses incurred by employees, or those who are self-employed, which are directly connected with you earning your income can be claimed, these include:
• Utilities such as heating, cooling and lighting
• Mobile and landline phone expenses for work calls
• Internet connections
• Computer consumables
• Repair costs for home office equipment
• Depreciation of home office equipment
• Immediate write-off for equipment less than $300
If keeping receipts and records for this all seems too hard the ATO have introduced a shortcut method of claiming 80 cents per hour for the period 1 March 2020 to 30 June 2020.
It is important to note that expenses such as rent, interest on your mortgage and insurance can only be claimed if your home is a “Place of Business.”
We will work with you to ensure you maximise your deductions.
Many of you who operate your businesses through a family trust will know that every year the Trust must pass a resolution before the 30 June as to which beneficiaries and what amount of income will be distributed, either in dollar or percentage terms. We will ensure that every one of your trusts has executed this resolution by June 30.
As always we are on hand anytime answer any questions or assist you with your business needs. We understand there is a lot to manage at present time so please don’t hesitate to reach out.
For those looking to have documents on hand or easy access to government portals please remember to download our new q4 financial app here.
Grant Titman and Kelly Hill