July 5, 2022

COVID-19 – implications for personal tax

In news released earlier this week, the government has announced a third stimulus package which includes giving eligible businesses a fortnightly wage subsidy of up to $1,500 per employee.

In news released earlier this week, the government has announced a third stimulus package which includes giving eligible businesses a fortnightly wage subsidy of up to $1,500 per employee. Known as the ‘JobKeeper payment’, this measure is to help businesses retain their employees. Employers must pass the full wage subsidy onto employees. More info can be found here.Today we discuss personal taxation including:

  • Tax returns done by 5 Advisory & Tax (5AT)
  • Deductions arising from working at home
  • Variations to PAYG withholding tax
  • Deferral of due dates for tax payments

Tax returns done by 5 Advisory & Tax (5AT)Currently 5AT’s priority will be to complete and lodge returns for clients who have lost their job, had their hours reduced, or closed their business as a result of COVID-19. If the above applies to you and you haven’t already let your adviser know, please contact us so we can expedite completion of your tax return. For everyone else, please be patient as we will complete yours as soon as possible.Deductions arising from working at homeIf you are working from home because of COVID-19, you may be able to claim a deduction for the additional running expenses you incur. These include expenses associated with heating, cooling and lighting in the area you are working from, phone, internet and other running expenses. It may also be possible to obtain a deduction for protective items (e.g. gloves, face masks, sanitiser and anti-bacterial spray) you use in your work. Please retain records of purchase if applicable.Variations to PAYG withholding taxIf you’ve had your hours cut back, you can lodge a PAYG withholding variation, either online, or through 5AT (for clients who have their taxes done through us).If you choose to vary your PAYG instalments, the ATO won’t apply penalties or charge interest to varied instalments for the 2019/20 financial year.Deferral of due dates for tax paymentsYou can defer the due dates for tax payments that were due after 23 January 2020. The COVID-19 remission applies to interest and penalties that were incurred on or after 23 January 2020.If you have any questions about the above (or any aspect of your financial situation), please let us know.For anyone who is interested in finding more about becoming a client of 5 Financial, please contact us to schedule a free no-obligation consultation with one of our friendly and experienced financial advisers.Note, the above does not constitute financial advice as it does not take into account your personal circumstances, timeframe or goals. Do not act on any information contained here, on our website or social media without first obtaining an opinion or guidance from your professional financial adviser.

return to News & Insights