The end of a financial year represents an essential time for all individuals and businesses. And this is thanks to the need to reduce the risk of regulatory audits and minimise tax exposure.
However, that’s only possible through proper and timely action. To aid you, here are important EOFY actions for individuals. We provide a summary of recent developments. And then, various measures you need to perform to minimise audit risk and reduce tax obligations.
New Things That You Should Know
It’s no news that this year has seen us all try to adapt to the Coronavirus pandemic. Well, this reality is the same for business. However, this novel virus has also brought new situations to light. They include
Delay of the 2020 – 2021 Federal Budget
Over the years, the Federal Budget comes out in May. However, this year, it is due to be released on the 6th of October.
Again, thanks to COVID-19, it is expected that some reforms will occur. This will mostly be to reduce spending, recoup revenue, and increase productivity.
New Claims Due to Working Remotely
Due to the various lockdown measures, you have needed to work from home. Luckily for you, you can now claim certain expenses you incurred while doing so.
For instance, you can receive payment for work-related costs. And each hour is valued at 80 cents.
All you need to do is record the number of hours you worked for. And this covers expenses like:
- Gas and electricity.
- Cleaning expenses.
- Internet and phone expenses.
- Reduction in the value of devices.
However, this rate is not calculated per expense as it covers all expenses. Also, this rate doesn’t get measured per household; instead, it gets calculated per individual.As such, ten people living within the same house can all claim payment.
Also, this rate only applies to hours between the 1st of March and the 30th of June.
Study Loan Refund Threshold
In case you have training and study loans (VSL, HELP, SSL, SFSS, TSL, and ABSTUDY SSL), the repayment threshold is pegged at $46, 620. And this involves your taxable earnings, and your total net investment deficit, super contributions, exempt overseas employment earnings, and fringe benefits.
To work more effectively in the next year, here are few actions to note.
- Confirm records to complete.
- Ascertain tax concessions and deductions that you can obtain.
- Ensure you get updated about tax changes.
- Avoid tax discount scams.
- Check your finances.
Ensuring Ease of Compliance
Organising your paperwork makes compliance easy. To do this, here is a list of some documents you need to make available.
- Statement of Income.
- Interest income from building societies and banks.
- Statement of dividend received.
- Travel expenses.
- Charitable donations.
Although this goes in a long way in helping you minimise audit risk and your tax obligations, there’s only so much this can do. As such, you need a professional to ensure you get the best result.
In case you need a detailed review and assistance, as you should need, you can contact us at Marketmasters. We offer tailored services to meet your needs.