Low Income Tax Offset
The low income tax offset (LITO) will continue to apply for the 2021-22 income year. Australian tax resident individuals whose income does not exceed $66,667 are entitled to the low income tax offset. The maximum low income tax offset is $700 for the 2021–22 income year.
Low and Middle Income Tax Offset
The Government announced in the 2021-22 Federal Budget that the Low and Middle Income Tax Offset (LMITO) will continue to be available for the 2021-22 income year. Australian resident individuals whose income does not exceed $126,00 are entitled to the low and middle income tax offset. The low and middle income tax offset amount is between $255 and $1,080.
Work from Home Temporary Shortcut Method
The temporary shortcut method to calculate your deduction for working from home expenses has been extended for the 2021-22 income year.
Using this method you can claim 80 cents per hour you work from home to cover expenses such as phone expenses, internet expenses, decline in value of equipment and furniture, electricity and gas for heating, cooling and lighting. You cannot claim any other expenses for working from home, even if you bought new equipment.
Amounts you do and do not need to include in your tax return
There have been a range of COVID-19 assistance and support payments made available to individuals during the 2021-22 income year such as the COVID-19 Disaster Payment and the Pandemic Leave Disaster Payment. There are specific tax implications for these, please contact us for advice regarding these payments.
General speaking, emergency assistance in the form of gifts from family and friends is not taxable.
If you need any support with reviewing your business systems and performance monitoring tools, call my office on 3399 8844 and we will give you a FREE Business Systems Check. You can also visit our website at www.straighttalkat.com.au and complete your details on our Home page to request a free appointment.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.