Due to recent events, such as COVID-19 (coronavirus), bush fire and drought, you may be able to claim a deduction for expenses you incur relating to the work you're required to perform from home.
You may be able to claim:
- Running Expenses
- Occupancy Expenses
- Phone & Internet Expenses
What a changed world we are living in as we all try to come to terms with the challenges arising from the current Coronavirus Pandemic, from protecting the health and safety of our family and friends, to the financial stresses on our businesses, employment and investments.
The following is a broad summary of the key announcements of the Federal Government’s stimulus package in response to the Coronavirus.
Fringe Benefits Tax is essentially a tax on employers in respect of mostly non-cash benefits provided to employees in addition to, or in place of a cash salary.
For FBT, employees included company directors, office holders, common law employees & recipients of compensation payments.
Clients, Customers, Shareholders & Suppliers are excluded from FBT.
Generally where the expenditure is subject to FBT, it becomes deductible to the employer under s8-1 of ITAA97. Both the tax deduction for the expense AND the fringe benefits tax paid will be deductible.
Where the expenditure is not subject to FBT, no tax deduction or GST can be claimed (eg. expenses provided to clients)
There are a number of options available to employers which can help minimise their FBT obligations as well as provide other useful income tax deductions as set out below.
The 2017/18 Federal Budget has recently been revealed this week.
Some continuation across the board from last budget, with small businesses continuing to benefit from lower tax rates resulting in more cash flow being available for investment & expansion. Bad news for those with student / HELP loans unfortunately and a lot more funding being given to the ATO for audits targeting the black economy.
Over the past few years, the ATO has been expanding it's data matching program to ensure compliance for taxpayers lodgments.
Currently the ATO is obtaining information from:
- Banking Institutions (obtaining interest earned amounts)
- Private Health Insurance Providers (obtaining annual statements)
- Employers (Matching Taxable Payments Annual Reports to ABN Holders declared Income)
- Share Trading Sources (Dividend Information)
Other key areas the ATO is targeting are: