As the world is slowing waking up to the devastation (Physical, social, and economic) caused by Covid-19 around the globe, Australia has also got its fair share. Everyday Australians are supporting hard lock down measures announced by National Cabinet and as a result the virus is well and truly under control at the time of writing.
Many businesses have closed, and many others are just surviving – Thanks to stimulus measures initiated by Prime Minister Scott Morrison.
Individuals, working from home, are also concerned with increased utilities usage and other toiletries. ATO has announced changes in recent times to account for some of the key issues at tax time.

DEDUCTIONS FOR WORKING AT HOME
For individuals working from home ATO announced 80-cent flat rate for home office usage between 1 March 2020 to 30 June 2020. While at first glance, this seems generous but on a closer look it is somewhat less so.
It seems generous as it is much higher than the existing 52 cent amount. It is also generous as ATO has removed the requirement to have a dedicated workspace which would have created a whole lot of issues for those who were thrown into working from home due to strict lockdown implemented in response to Covid-19 pandemic.
However, the existing 52-cent flat rate covers only the costs of heating, cooling, lighting and cleaning of the premises and depreciation of home office furniture. It doesn’t cover other items such as phone and internet expenses and depreciation of office equipment. These can be separately claimed.
The 80-cent flat rate on the other hand covers all work at home deductions including for example, phone and internet.
In my opinion, it could pay to do the maths provided the taxpayer keeps good records to support actual claims. Working with the 52-cent flat rate plus actual other claims may give rise to a much bigger deduction, than a straight 80 cent flat rate claim. Be careful though – by taking this path based broadly on actual expenses, the taxpayer is more likely to be put to the test of demonstrating the legitimacy of the claim with actual receipts and demonstrating a reasonable basis of appropriate apportionment. With the 80-cent flat rate a record using, for example, time sheets or some other form of legitimate evidence to show hours spent working from home will suffice.
JOB KEEPER PAYMENT
For an employee’s perspective, this initiative is straight forward. An employee needs to fill out a nomination form and he is done.
Employers, on the other hand, need to do all the heavy lifting. There are several key requirements that an employer needs to satisfy:
1. As of 1 March 2020, an employer was carrying on a business.
2. Employer must be satisfied that he is not an excluded entity.
3. Employer must demonstrate that an employee is paid $1,500.
4. The employer must demonstrate that he suffered a turnover decline of at least 30%.
5. The employer must notify its election to participate and give information about the eligible employees to the Commissioner before the end of relevant fortnight and notify the individual in writing within 7 days.
FOR A RANGE OF OTHER STIMULUS MEASURES ANNOUNCED BY FEDERAL AND STATE GOVERNMENTS CLICK HERE. COURTESY: CPA AUSTRALIA
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