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Hot Issues
September update of latest COVID-19 initiatives.
ATO JobKeeper 2.0 guidance surfaces
Expats Return to Australia – Travel Expenses
Profession to be relied on for post-JobKeeper turnover certificates
Update of Superannuation contribution rules from July 1, 2020
Expats & COVID-19 Impacts on tax residency
Economic recovery could be slower than anticipated: RBA
High Court rules in favour of employers on personal leave accruals
JobKeeper Phase 2 - Latest Update
Payroll Tax 2020 concessions and JobKeeper
High alert issued over myGov tax time scam
Extended director penalty regime to catch out ‘zombie companies’
SG amnesty deadline - 7 September
‘Hundreds’ to be contacted in ATO early super compliance blitz
90,000 SMEs to benefit from new JobTrainer program
Work Related expenses – 2020
‘Everyone is now on notice’: ATO acquires COVID-19 data on 3m Aussies
Extra Tools & Resources for our clients.
Year End Tax Deductions – “equipment”
Home Office Claims 2020
Early release of super sees ‘high take-up’
Tax time 2020: ATO homes in on rental deduction claims
ATO announces Div 7A COVID-19 assistance
‘HomeBuilder’ grants now available.
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Year End Tax Deductions – “equipment”

As retailers promote heavily for taxpayers to buy before year end, are their advertisements real or imaginary?



       


If a retailer promotes a TV for a 40% discount at $2,500 with the slogan “eligible taxpayers will get a tax deduction”, is that real and should I be tempted?


If you have just begun working from home instead of the work office, as an employee you should ask “can I claim the $2,500?”


Short answer - No.


Home office work related expenses rules will allow depreciation of the non-private portion if there is a connection with employment.  A reasonable question would be – why do you need a $2500 TV screen compared to a $150 screen or a notebook?  Whilst the quantum is not the test, it goes to the credibility of the connection with employment.


If you can make the connection, the depreciation claim may be 20% of the cost for the remaining days to the end of the year.   At a marginal tax rate of 30% the benefit is minor. 


The justification for buying any equipment should firstly be economic, with tax benefit secondary


An alternate question may be – “why can’t I benefit from the instant asset write off that is constantly reported and advertised?


This relates to small business entities who probably don’t care about a tax deduction right now – they only care about staying in business.  For most small business, tax deductions can help but the economic benefit of any expenditure is the first rule.


 


 


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