No wonder, 2019–2020 has settled in our memories with unforgettable experiences. But with the end of this financial year, you need to review ‘what is your financial position right now.’ For instance, everyone is well-acquainted with how we are dealing with the global pandemic COVID-19 impact.
Hence, there’s nothing wrong with saying that this year will be identified as one of the most vexing years that ever had come in the life of any businessman. But, amid this problematic situation, you should get relief from tax exposure and audit risk by regulators. It is vital to take help related to the online tax return in Melbourne amid this hard time.
EOFY- an essential moment for businesses
The End of Financial year has always been one of the busiest and actionable times for business owners. EOFY is a great opportunity that advises all business owners to think more and create strategies in the New Year.
That’s why it is imperative to gain all the essential information that may help you tackle your EOFY.
We advise you on making the future a little less stressful and starting a new financial year with full dedication. We always strive to keep you up-to-date with the latest situations and online tax return possibilities in Melbourne.
What’s new that you should know
The release date of the 2020-federal budget has been delayed. Earlier it was assumed that we’d see it until 6 October 2020, but now it has been postponed. More information will be provided to you from time to time with advice on what changes are likely to impact you.
What can you claim if you are working from home?
During COVID-19 impact, you might have incurred loads of expenses, probably putting a burden on your shoulder. Hence, under special arrangements from 1st march to 30 June 2020, you can claim your expense.
The claim covers-
- Incurred work-related expense
- The employee hasn’t been reimbursed by an employer (for each hour you have worked, you can claim 80 cents for costs)
- Electricity and gas
- Cleaning expenses and Stationery
- For office furniture declining value or repair
- Phone and internet expenses
- On the declining value of computers and devices, etc
Simultaneously, as per 80 cents, you can claim $470.40 that covers all these expenses if you have worked 84 days or 588 working hours. However, individual expenses can’t be requested separately.
Also, if more than one person is working from home in your family, then each individual has a right to claim 80 cents; on each hour, they have to spend on work while staying home.
On the other hand, if you are only temporally working from home due to COVID-19, then ATO (Australian Taxation Office) may not provide you claim for occupancy cost, rent, and mortgage interest payments.
What about a home-based business?
You can only claim occupancy and running expenses if your business is already home-based. At the same, if you operate under a company, you must have a rent-agreement for being eligible for claim as per ATO guidelines. You can seek a claim against rental expenses if you have an original rental contract. If you don’t have any original rental agreement, you aren’t eligible to claim your rental expense deduction.
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