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ATO extends 80 cents per hour method for home office ‘running expenses’ to 30 June 2021

Dawson & Partners • Sep 07, 2021

The 80 cents per hour method to claim deductions for home office running expenses has now extended and can be used for the 2020/21 income year. Home office running expenses incurred as a result of working from home can generally be claimed where employees and business owners use their home to carry out genuine income-earning activities.

The hourly rate covers all additional running expenses, namely:

  • Electricity expenses (e.g., in relation to heating, cooling, lighting and electrical items, such as a computer and a printer being used for work).
  • Gas expenses (e.g., in relation to heating).
  • Cleaning costs for a dedicated work area at home (e.g., for a dedicated home office).
  • Phone (including mobile phone) and internet expenses.
  • Computer consumables (e.g., printer paper and printer cartridges).
  • Depreciation of office furniture and furnishings (e.g., an office desk and a chair).
  • Depreciation of home office equipment (e.g., computers and printers).

The 80 cents per hour method is an optional and alternative method to claiming home office running expenses and that individuals still have the option to use the following existing claim methods, even during the period 1 July 2020 to 30 June 2021:

  • the '52 cents per hour method' (which only covers heating, cooling, lighting, cleaning an depreciation of office furniture); and/or
  • the 'actual method' – which involves analysing separate running costs associated with working from home and claiming the work-related portion of such costs.

The ATO's 80 cents per hour method is generally a more simplified method for claiming home office running expenses compared to above existing claim methods. This is particularly because it is simply based on a fixed hourly rate of 80 cents for each hour worked at home and will only require minimal records to be kept (i.e., a record of the number of hours worked from home during this period).

A deduction can only be claimed by a taxpayer in these circumstances for expenses associated with their home, where the relevant expense:

  • has been incurred by the taxpayer (and not paid for by a third party – e.g., an employer);
  • has a sufficient connection with the taxpayer's income-earning activities; and
  • can be substantiated or verified (e.g., by providing written evidence of the expense and a record of the hours worked at home to verify the deduction portion of the expense).

If you would like any further information or assistance in regards to Home Office Expenses, please feel free to contact us on 1300 885 761 .

07 Dec, 2022
Christmas 2022
22 Nov, 2022
You may have heard about the new rules which require directors of Australian companies to obtain a Director Identification Number (director ID). It is a unique 15-digit identifier that directors apply for once and keep forever. The following provides some useful further information. As a director of my SMSF’s corporate trustee do I need a director ID? The new requirement to obtain a director ID applies to all directors of corporate trustees of an SMSF. The only exclusion applies to a director who has resigned from all director roles during the period 04 April 2021 to 30 November 2022 and has no intention to ever be appointed as a director or alternate director of an Australian or foreign company. How long do I have before I need to get my director ID? Individuals that were a director of any company prior to 1 November 2021 have until 30 November 2022 to get a director ID. This transitional period also applies to newly appointed directors of corporate trustees of an SMSF, provided they were an existing director, of a company, before 1 November 2021. Otherwise, first time directors are now required to have a director ID before they are appointed as director of any company. What is the fastest way to apply for a director ID? With 30 November 2022 fast approaching, we strongly encourage all directors to apply for their director ID now. The fastest way to apply for your director ID is online at abrs.gov.au/directorID . To access the director ID application online, you will use your myGovID to log in to ABRS (Australian Business Registry Services) online. This director ID demonstration video will show you step by step, how to apply for your director ID online. What to do if you do not have a MyGovID already? A myGovID is different to your myGov account. Your myGov account allows you to link to and access online services provided by the ATO, Centrelink, Medicare and more, while myGovID is an app that enables you to prove who you are and to log in to a range of government online services, including myGov. If you do not already have a myGovID you will need to set this up before you can apply for your director ID online. Refer to mygovid.gov.au/setup for more information on setting up a myGovID. You will need to choose your identity strength, noting that ‘standard’ identity strength is the minimum strength required for a director ID. What if I can’t set up myGovID online? Where you are experiencing difficulties setting up your myGovID, the ATO encourages you to contact them on 13 62 50. To speed up the phone application, please have your TFN ready as well as the information listed below, required to verify your identity. If you cannot apply online or over the phone, the ATO will provide you with a paper form to complete. This is the least preferred option and will require you to provide certified copies of your documents to verify your identity. Can we help you get your director ID? You must apply for your director ID yourself, so that the ATO can verify your identity. To verify your identity against your ATO records, once you have logged into ABRS online using myGovID, you'll need your tax file number, your residential address held by the ATO, and information from two of the following documents: bank account details (where your tax refunds or payments are made and received) an ATO notice of assessment a dividend statement a Centrelink payment summary a PAYG payment summary (this is different to your income statement or your PAYG instalment activity statement). How can we help? If you have any questions or would like further information about director IDs, please feel free to give us a call on 1300 885 761, so we can discuss your requirements in more detail. Although we are unable to apply for a director ID on your behalf, we would be more than happy to guide you through the process and where possible, source documents to help you verify your identity with the ATO.  For other information, resources, and timely updates relevant to your SMSF, please refer to the SMSF Association’s trustee education platform, SMSF Connect.
By Dawson & Partners 23 Oct, 2022
All employers are required to pay and report super guarantee payments electronically to ensure they meet SuperStream requirements. With the introduction of SuperStream it is now easier for the ATO to monitor your payments to ensure they have all been paid on time. Super guarantee payments must be made by employers to their employees' complying funds by quarterly due dates, which are 28 days after the end of each quarter. The due dates for each quarter are as follows: 
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