It’s that time of year again – tax time and this time around there are some changes to keep in mind according to the friendly staff at Power and Tynan at Stanthorpe.
Power and Tynan director Gilda Brisotto said these included income statement, $150,000 instant asset write-off for business, working from home deductions, reduced or lost income and jobkeeper, jobseeker and the early release of super.
“Most employers are now using Single Touch Payroll (STP) and therefore will no longer provide PAYG Payment Summaries,” Ms Brisotto said.
“Instead, you can view your Income Statement using myGov. As we can access your Income Statement directly from the ATO, there is no need to provide this document to us.
“For new depreciable assets costing up to $150,000 and purchased between March 12 2020 and 30 June 30 2020, business owners can claim an outright deduction,” she said.
“Please note: the $150,000 instant asset write-off threshold has been extended to December 31 2020. This means, if eligible, you can claim an immediate deduction for the business portion of an asset first used or installed ready for use from July 1 to December 31 2020, in your 2020-21 tax return.”
Ms Brisotto said the COVID-19 pandemic had also affected a few aspects this year.
“As many people were forced to work from home due to COVID-19, the ATO has introduced a new “shortcut method” for calculating working from home deductions,” she explained
“If you worked from home between March1 and June 30, you just need to provide the number of hours in order to calculate your deduction under this new method.
“If your income ceased or reduced due to the pandemic, it’s likely you’ve overpaid your tax and will be entitled to a larger refund, as the tax withholding tables are based on a person earning the same income for a full year.”
Ms Brisotto said if you are an employee on Jobkeeper or are on Jobkeeper there was nothing special to do.
“The JobKeeper payment will form part of your normal Income Statement and in the case of Jobseeker Centrelink will provide us with your Income Statement,” she explained.
“Keep in mind that if you didn’t ask for tax to be withheld from your JobSeeker payment, you may need to pay in your tax return instead.
“If you withdrew super because of COVID-19 there’s nothing special you need to do, as this super release was tax free.”
To help limit the spread and flatten the curve, Power and Tynan are offering video appointments and upload options for Tax Time this year.
“If you’d like your tax done this way, just let our team know when you call the office to make an appointment,” Ms Brisotto said.
For further queries or additional information in regards to 2020 tax, contact their office at 142 High Street, Stanthorpe or phone 0746816700 or email: email@example.com.