Almost 14 million Australians will lodge their tax returns this year.
Australian Tax Office ((ATO)) Assistant Commissioner Karen Foat says economic measures taken by the Australian government to navigate through the pandemic make 2020 a very different tax year than usual.
The A-T-O expects an increase in work-related expense tax deductions and rental property claims.
The tax office says if you plan to lodge your own return online, you must link your MyGov Account to the ATO’s online MyTax service.
Ms Foat says due to these changes, the ATO is providing extra support for people from all communities
If you are an individual you need to lodge your tax by October 31st this year.
If you plan on using a tax agent you can have longer, but you need to be one of their clients before October 31st.
So, what can and can’t you claim if you have been working from home?
Well you can’t claim mortgage or rent payments, tea, coffee or food, but you can claim part of the cost of the phone and internet.
You can claim the cost of electricity for heating, cooling or lighting in the room in which you are working, but only for the time of hours worked.
You can also claim cleaning costs and furniture for your home workspace but not for elsewhere in your home.
how are you affected if you are on JobKeeper?
Employees that have received JobKeeper payments from their employer don't have to do anything different because the payments will be included as salary or wages earned in their regular income statement, which the employer provides to the A-T-O.
The only thing that is different is your income statement, that was formerly known as your Payment Summary, which can only be accessed via your MyGov account.
If you use a tax agent they also have access to this information, but the A-T-O's Karen Foat says the circumstances are different if you are a sole trader.
How are you affected if you are on JobSeeker?
Karen Foat says if you are receiving JobSeeker and the coronavirus supplement you have to declare it as income
How are you affected if you had early access to superannuation?
If you received early access to superannuation, any amounts withdrawn are tax-free therefore you do not need to declare them in your tax return.
What can you claim if you have a rental property?
Over two million people have rental properties in Australia and over 60 per cent of them are negatively geared.
Many tenants are paying reduced rent or have ceased paying rent because their income has been significantly affected by COVID-19.
While banks defer loan repayments for Australians suffering mortgage stress, interest being charged on these loans is still a legitimate tax deduction.
Where can you get help?
There's a lot of information to process but there are free services to help you navigate through this tax time.
And you can keep up to date on the coronavirus in your language at sbs.com.au/coronavirus
