It has been a difficult year, but your tax return doesn’t need to be. Find out the how different types of income and expenses may affect your obligations this year.

COVID-19 work related expenses

Working from home – The ATO announced the temporary ‘short-cut method’ that applies from 1 March 2020 to 30 June 2020 for those who have incurred some form of expense for working from home as a result of COVID-19.

Protective clothing – If you work in industries like healthcare, retail and hospitality; another deduction you may be claiming due to COVID-19 is expenses for protective items if they have been paid for and not been reimbursed. These items include gloves, face masks, sanitiser, anti-bacterial spray.

Travelling from home to work – Generally, most people cannot claim the cost of travelling to and from work and working from home as a result of COVID-19

JobKeeper and JobSeeker

If you’re a sole traders and received the JobKeeper payment on behalf of your business, you will need to include the payments as assessable income for the business.

If you have received JobSeeker, the ATO will also load this information into your tax return at the Government Payments and Allowances question once it’s ready. If you’re lodging before this information is included for you, you will need to make sure you include it. Leaving out income can slow your return down or result in a bill later so it’s definitely best avoided

Early access to superannuation

If you received early access to your super this year under the special arrangements due to COVID-19, any amounts you’ve withdrawn from super under this program are “tax-free” and you do not need to declare them in your tax return. However I strongly suggest you consult your registered Tax Agent or Financial Advisor to discuss the full implications.

Help

All good, qualified, registered Accountants and Bookkeepers, such as A Girl Friday, have been working very hard to know every inch of the COVID-19 financial changes, and can direct you how to claim what you deserve, and to apply for any assistance you have been entitled to.

Please seek professional advice regarding your Tax, your COVID-19 finances, and your business strategies