I can’t stress the importance of keeping digital records to support your claims. If you cant seem to organise your expenses, use the myDeductions tool in the ATO app to keep a record of your expenses throughout the year.
Key changes this tax time, what you can do to prepare, things to consider before lodging, and helpful resources.
Work From Home Deductions
If you’ve been working from home during lockdowns or because of the pandemic’s you have the option to claim the following :-
- Home office Shortcut Method – 80 cents (cannot claim any other equipment, includes phones, internet, furniture, and equipment.)
- Home office Fixed rate Method – 52 cents ( includes home office furniture and furnishing, cleaning, and electricity) you can also claim phones, data and internet, computer, and laptops)
Useful ToolKit – TaxTimeToolkit_Recordsyouneedtokeep
Deduction for COVID-19 tests
You can claim a deduction in 2021–22 for costs you incurred for COVID-19 test expenses. This is only if you used the test for a work-related purpose. The test can be any test in the Australian Register of Therapeutic Goods, such as a polymerase chain reaction (PCR) test or rapid antigen (RAT) test.
Concessional Contributions & Notice of intent to claim a tax deduction
Concessional contributions are known as the before-tax contributions. The concessional contributions cap is $27,500 for all ages for the 2021-22 financial year.
These can include
- Employer contributions
- Salary sacrifice payments
- Personal contributions (which can be claimed as a tax deduction).
Your cap may be higher if you did not use the full amount of your cap in previous years. This is called the carry-forward unused concessional contributions.
(From 2019–20, carry forward rules allow you to make extra concessional contributions above the general concessional contributions cap. without having to pay extra tax).
But remember that you can’t claim the tax deduction until you have lodged your notice of intent to claim a tax deduction and have received an acknowledgement back from the fund.
If your combined income and concessional contributions are more than $250,000 in total, you may have to pay extra tax (known as Div293 Tax).
This is something to consider if you are looking to make personal contributions as a tax deduction.