THERE have been several changes that may affect both businesses and individuals when submitting tax returns this year.
Navneet Jyoti, director of Tax Guru Chartered Accountants, said, “The low to middle income tax offset (LMITO) has been increased by $420 for the 2021-22 income year. The base amount has increased to $675 for individuals earning less than $37,000 and the full amount is $1,500 for individuals earning between $48,000 and $90,000.”
A tax professional can help you navigate the changes and the specific tax treatment with regard to Covid Disaster Payments, Pandemic Leave Disaster Payments, and the expenses you may have spent to do COVID test.
“Those that have worked from home are able to claim 80 cents per hour to cover utilities like electricity, internet, and heating. This can equate to up to $500 or more in your pocket,” said Mr Jyoti.
“The biggest change for businesses is the increase in superannuation to 10.5 percent, from 10 percent.”
Improvements with Single Touch Payroll (STP), a government initiative to reduce employers’ reporting burdens to agencies like the ATO, will save businesses time and money but everyone should be aware that the taxation system is constantly evolving to meet modern demands.
This includes adapting to monitor investments in cryptocurrency and non-fungible tokens as lot of taxpayers are trading in Crypto currencies / CFDs etc.
To ensure you get the best out of your tax position, the team at Tax Guru Chartered Accountants are located at Suite 3/164 Welsford Street, Shepparton and can be reached on 5822 1900 or their website at www.taxguru.net.au
