10 things to know this tax time
Flor- Hanly - Monday, July 20, 2020
Tax time is here
The ATO has developed a list of important things you need to know this year.
They recognise 2019–20 has been difficult for many. We will provide support where we can and help our clients with information you can use to get things right, to ensure an easier tax time.
- We have resources you can use to help understand your obligations for example the ATO's Tax Time Toolkits: https://www.ato.gov.au/Tax-professionals/Prepare-and-lodge/In-detail/Tax-Time-Toolkits/
- To reduce the risk of mistakes and amendments to tax returns, wait until your income statements are ‘Tax ready’ before lodging. Pre-fill information should be finalised for most of our clients by the end of July.
- Employers no longer need to give their employees payment summaries or lodge a payment summary annual report to us for information reported and finalised through Single Touch Payroll (STP). Instead, employees' income statements will be available to them in ATO online services through myGov.
- After the last pay event for the financial year, employers need to make a finalisation declaration. They must do this by:
- 14 July if you have 20 or more employees
- 31 July if you have 19 or fewer employees.
- If you receive JobKeeper payments, these are treated as assessable income and will be included in the pre-fill data. If you are a sole trader, you need to include the payments as business income in their tax return.
- Funds received through the COVID-19 early access to superannuation measure are not assessable income and do not need to be included in a tax return.
- The cash flow boost amounts are non-assessable non-exempt (NANE) income and should be included in your tax return the same way as other NANE income. Employers are still entitled to a deduction for the pay as you go withholding paid.
- The ATO has introduced an optional shortcut method for employees working from home during COVID-19. Employees can claim 80 cents for each hour they worked from home between 1 March 2020 and 30 June 2020, to cover all deductible expenses.
- The instant asset write-off threshold increased to $150,000 and eligibility was expanded to cover businesses with an aggregated turnover of less than $500 million from 12 March 2020 until 31 December 2020. To claim this tax time, assets must be first used or installed ready for use by 30 June 2020.
- If you are unable to make a payment by the due date, we can submit a payment-only deferral request form on your behalf until 14 September 2020 for eligible obligations.