Tax Time 2021
Another year has come and gone and again we say 'I must complete my tax return'. But, it doesn't have to be difficult and now-a-days with technology things are much more streamlined than they ever have been.
We have designed a checklist for you to complete when you are ready to complete your return which makes it easy to compile your information and think of all aspects to stop that little old friend of the 'back & forth'.
We can meet with you in person, online via Microsoft Teams, or work through your tax return over the phone, the options are endless.
Tax Tips 2021
- COVID-19 – Were you required to work from home during the COVID-19 pandemic? If so, check out the Tax Office's Home Office Expenses page to see what you might be able to claim. Working from home during COVID-19
- Bring along your bank account details - The Tax Office no longer pay tax refunds by cheque and require that tax returns expecting a refund include bank account details.
- Ensure your details are up to date – Make sure you let us know if you have moved addresses, changed your phone number or your email address. Doing this ensure communication and information makes it to you as quickly as it can and in the form that you prefer.
- Electronic signature – With the way of the world now you can receive, review and sign your tax return electronically, on a click of a button we can have it received and lodged ready for your refund to be on its way!
Hints To Remember
Motor Vehicle Usage
This one always catches people out!
If you use your motor vehicle for work related purposes the following two methods can be used to calculate your deduction:
- A set rate for each business kilometre
- Claim to a maximum of 5,000 business kms
- Based on the business use percentage as per the log book records
- Odometer readings are required at the start and the end of the period
- Written evidence of expenses is required
Follow three golden rules when it comes to claiming deductions
You can claim a deduction for most of the costs of running your business. But it's also important to remember the three golden rules so you only claim what you're entitled to:
- The expense must have been for your business – not for private use.
- If the expense is for a mix of business and private use, you can only claim the portion that's used for your business.
- You must have records to prove the expense and show how you worked out the business portion of an expense.
Increase in superannuation
After many years of the Superannuation Guarantee percentage set at 9.5% it is increasing to 10% on 1 July 2021. For salary and wage payments made on or after 1 July 2021, the minimum superannuation guarantee contribution rate of 10% will need to be applied.
What is the ATO focusing on when assessing tax returns in 2021?
The ATO has laid bare the targets in its sights for people submitting their 2021 tax returns.
The ATO is cracking down on:
- Work-related expenses (including double-dipping when claiming deductions and claiming work-related expenses that AREN'T related to work)
- Rental properties
- Capital gains from cryptocurrency, property and shares
Get ahead at tax time
It's been an unusual year, and for many of us, that's meant a change to how we work. Along with any disruptions to income, there may also have been extra expenses relating to a home office. To ensure you're prepared for tax time, it's a good idea to start getting organized now. Contact the Team at West Currie to get your 2021 Tax underway today.