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Time To Think About EOFY Important Actions For 2020

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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.

Work-related – car expenses

You can also claim work-related car expenses from 1 July 2020 in between 62-72 cents per kilometer. All these will be evaluated by using the ‘cents per kilometer method’ that covers the claim for 5000 business kilometers per year per car.

Tax policies for Foreign income receivers

Do you receive foreign income? Then you must be aware of the tax policies with whole clarification. For instance,

Australian resident: As a resident of Australia, if you are receiving income from overseas, you’ll have to pay tax on income you earn. And for this, you contact us for an online tax return in Melbourne.

Foreign resident: If you aren’t a resident, then being a non-resident taxpayer, you will be taxed on Australian sourced income ( e.g., Australian rental income or generated revenue while working in Australia) starting at 32.5% on every dollar. No fixed-thresholds, and if you want an online tax return in Melbourne, you can contact us.

Temporary residents: If you are neither a foreign nor a resident of Australia, indeed you are only temporary residents for few months in Australia, then you’ll be nearly no taxed for your Australian sourced income or foreign-sourced income.

However, you’ll be taxed even if you are living outside of Australia for some time. Especially for those who have made an international investment, you’ll still be taxed for your earnings even if the cash stays outside Australia’s boundaries. As per Australian laws, you’ll always be recognized taxable whether foreign income is already taxed or not.

Rental properties, amid & after COVID-19.

COVID-19 doesn’t influence any sector. But apart from that, if you have rent out your commercial or residential properties, then only a few changes are made that come under tax policies.

  • In the situations of temporary reduced rent or if the tenant is unable to pay you rent, you can claim for that as per ATO.
  • But above from that, if the tenant pays rent, then you will be taxed for this income that you’ll have to mention in your online tax return, Melbourne.
  • Since the deferred interest rate is capitalized, so you can continue to claim the interest.

Moreover, if you are an Australian resident and you have a property in another country that generates rental income for you. Then you must recognize this rental income while filing an online tax return in Melbourne. However, during this, you’re also allowed to claim rental income expenses as per the conditions stated above.

Ultimately, if you’re planning an online tax return in Melbourne, then well-organized paperwork will surely make things much easier for you. In this way, you save your time as well as save money that’s essential for your business amid this global pandemic-COVID-19.

However, to sustain a good record with ATO and keep your business in shape, don’t forget-

  • Submit tax returns
  • Conduct a stocktake
  • Figure out your profit and losses
  • Completing income statements
  • Lodging reports for your PAYG, FTB, and GST
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