Shortcut rate for claiming home office expenses extended
The ATO has extended (again) the ability to utilise
the "shortcut rate" for claiming home office running
expenses to 30 June 2021 (it previously only applied
until 31 December 2020).
The ATO's guideline allows certain taxpayers to
claim a fixed rate per hour (80 cents per hour) for
most additional running expenses incurred when
working from home by keeping a record of the
number of hours they have worked from home,
rather than needing to calculate specific running
expenses.
The expenses included in the shortcut rate include
lighting, heating, cooling and cleaning costs, the
decline in value and repair of home office items
(such as furniture and furnishings in the area used
for work, computers and laptops, etc.), and phone
and internet expenses.
However, the guideline does not cover "occupancy
expenses", such as rent, mortgage interest,
property insurance and land taxes.
AAT decision on JobKeeper and backdated ABNs
On 21 December 2020, the AAT handed down its
decision in a case relating to a taxpayer's eligibility
for JobKeeper payments, in circumstances where
the Registrar of the Australian Business Register
decided to reactivate a previously cancelled ABN
after 12 March 2020, with a backdated effective
date on or before 12 March 2020.
The AAT held that the taxpayer met the JobKeeper
requirement to have an ABN on 12 March 2020.
However, the ATO disagrees with this decision and
has lodged an appeal in the Federal Court.
While the appeal outcome is pending, the ATO
will postpone finalising decisions regarding an
entity’s eligibility for JobKeeper where the entity
has backdated its registration in order to qualify.
The ATO is taking a similar position in regard to
eligibility for the Cash Flow Boost.
Note that the AAT's decision has not changed the
need to satisfy all other eligibility conditions.
SMSF related party rental income deferrals due to COVID‑19
The ATO has made a determination to ensure that
trustees of SMSFs do not inadvertently breach the
"in-house asset rules" where the fund allows a
related party to defer the payment of rent under a
lease agreement (on arm’s length terms) because
of the financial impact of COVID‑19.
Where the requirements of the determination are
met, the deferral of rent will not be treated as a
"loan" or "financial accommodation" to the related
party in either or both of the 2019/20 or 2020/21
income years.
The determination also applies where an SMSF
owns interests in a "non-geared" company or unit
trust that allows a tenant to defer the payment of
rent under a lease (on arm’s length terms) because
of the financial impact of COVID‑19.
ATO data-matching programs
The ATO has announced it will engage in the following data-matching programs:
- it will acquire motor vehicle registry data from state and territory motor vehicle registry authorities for 2019/20 through to 2021/22, with records relating to approximately 1.5 million individuals to be obtained each financial year; and
- it will acquire data on Australian sales made through online selling platforms for the 2018/19 through to 2022/23 financial years, collecting 20,000 to 30,000 account records each financial year (with around half of the matched accounts relating to individuals).
These records will be electronically matched with ATO data holdings to identify non-compliance with registration, lodgment, reporting and payment obligations under taxation laws.
JobMaker Hiring Credit scheme: Claims open from 1 February 2021
The JobMaker Hiring Credit is being administered
by the ATO and provides a wage subsidy payment
directly to employers as an incentive to employ
additional job seekers aged 16 to 35 years.
Registrations for the JobMaker Hiring Credit
scheme opened on 7 December 2020, and claims
for the first JobMaker period can be made from 1
February 2021, provided employers are registered
and meet all eligibility requirements.
Employer eligibility requirements include that
applicants:
- are up to date with their tax and GST lodgment obligations for the last 2 years;
- have not claimed JobKeeper payments for a fortnight that started during the JobMaker period; and.
- are reporting through Single Touch Payroll.
The ATO will be writing to employers who have
registered for the JobMaker Hiring Credit from 15
January 2021, encouraging them to check that they
meet all JobMaker Hiring Credit eligibility criteria
before they claim, to ensure that registrants can
make a claim from 1 February 2021 and there are
no delays in them receiving their payments.
Editor: Please contact us if you need any help with
these claims.
Cash payment limit Bill shelved
It appears that the Government has decided not to
proceed with its proposal to limit cash payments
in Australia to $10,000.
This measure was originally raised as part of the
2018/19 Budget, and the Government subsequently
introduced a Bill to the House of Representatives,
proposing to make it an offence for entities to make
or accept cash payments of $10,000 or more.
That Bill passed the House and was then introduced
to the Senate on 11 November 2019, but proceeded
no further, and the Government withdrew the Bill
from the Senate on 3 December 2020.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.