The ATO has finalised its new compliance guidance around the requirements for work-from-home deductions. The fixed rate method has now been revised. The revised method increases the claim from 52 cents to 67 cents per-hour. However, this rate now includes internet, phone, stationery and computer consumables. The record-keeping requirements under the revised fix rate method are now more onerous, also. You now need to keep a record of actual hours worked from home. The ATO will no longer accept estimates, or a four-week representative diary. This requirement is effective immediately (1 March).
Do you have an urgent medical or dental procedure to pay for? The ATO released a record $573 million in superannuation on compassionate grounds during 2021–22. While normally superannuation must be preserved for retirement, there are certain exceptions. One of these is compassionate grounds which among other things provides for a release of benefits for medical or dental treatment. Last year 9700 individuals applied for compassionate release of super for dental treatment expenses, and 82% were approved. There is no lifetime limit on the number of applications for release that you can make.
Meanwhile, with the end of the FBT year looming, car logbooks need to be in order for FBT purposes. Logbooks are valid for five FBT years (including the year the logbook is prepared), provided there is no significant change in the vehicle’s business use. Once the five-year period expires, a new logbook will need to be maintained if you wish to continue using the operating cost method. Therefore, if a logbook was last prepared in 2017/18, a new logbook is required for this FBT year (2022/23).
Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.
Disclaimer: All information provided in this newsletter is of a general nature only and is not personal financial or investment advice. Also, changes in legislation may occur frequently. We recommend that our formal advice be obtained before acting on the basis of this information.