Earlier this year, the Fair Work Ombudsman (FWO) announced several changes to employment regulations, many of which will take effect this August. The updates aim to create fairer and more transparent employment practices, address current gaps in the law, and meet the needs of today’s workplaces.
Professional contractors ask us if there are any benefits in setting up a Company or Family Trust and bill the agency or client for their contracting revenue. The answer to the above lies in understanding the Personal Services Income legislation (PSI). This question is not about status as ‘Contractor’. Even though you may meet all the criteria of Contractor and fit the definition of Contracting, this is about how the ATO treats the payments made for tax purposes – as business income or personal income. You need to earn Business income to reap any benefits from
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But unlike other years, due to COVID-19 having a massive impact on our personal circumstances, there have been some big changes to how we do our tax returns. According to the ATO, nearly everyone’s circumstances have changed.
Here is scoop of things to know.
Working from Home – How much can I claim?
To simplify things, the ATO has released an easy short cut method to make a claim from your working-from-home expenses. The Work from Home expenses internet, telephone, electricity, heating and depreciation of office equipment. You can claim 80 cents per hour for every hour you have worked starting from 01st March 2020. Using this method is easy to comply and only requires a timesheet or diary of hours worked from home.
Multiple people living in the same dwelling can claim the rate, and there is no requirement to have a dedicated work-from-home space.
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