Everything You Should Know about Tax Return 2020

The year 2020 has been quite challenging for many taxpayers simply because of the Covid-19 pandemic. The predicament of Coronavirus has even resulted in some remarkable alterations in the current tax time of Australia.

If you hire a Tax Consultant Perth you will get detailed bits of information about these changes. Keeping that factor in mind, given below are some important things which you must know about the 2020 tax return.

    1. The Progress of Your Tax Return

You can submit a payment-only deferral request if you cannot pay your taxes within the due date. You can ask your tax agent to do the same for you by 14th September 2020 considering your pertinent liabilities.

You need to lodge your tax return by 31st October 2020 if you’re doing it on your own. The ATO had commenced its comprehensive processing of 2019-2020 tax returns from July 5, 2020. The ATO was supposed to begin paying the refunds from July 16, 2020.

Tax Time Toolkits

You can access an array of Tax Time Toolkits from ATO’s official site. These resources will help you comprehend your pertinent taxing obligations effectively. Besides these toolkits will also assist you to prepare and lodge your tax returns impeccably. After you’ve lodged your tax returns the ATO will confirm your e-tax return within 12 days of reception.

    1. The Instant Asset Write-off

As per the norms of the Australian Taxation Office (ATO) from March 12 till December 31, 2020:

    • The range of eligibility is broadened comprising businesses with a comprehensive turnover below $500 million (commencing from $50 million).
    • The threshold of the instant asset write is $150,000 (commencing from $30,000)

Australian businesses with a comprehensive turnover below AU$500 can now boost up their depreciation deductions. These deductions chiefly apply to the purchase of some specific depreciable assets. You should have used these assets effectively or prepare them for being used to claim the said deductions. The due date for this is 30th June 2020.

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    1. The JobKeeper Payment

A new day. A new stimulus package. And a new way to keep around half of Australia’s 13 million-strong workforce employed.

In March 2020 the Australian government announced a $130 billion JobKeeper payment package to support affected businesses and their employees through the COVID-19 pandemic. Eligible employers would receive a $1,500 payment per fortnight, per eligible employee until 27 September 2020 to assist with the economic impact caused by COVID-19. This package has now been extended to last until March 2021.

There has been confusion around who is and isn’t eligible, how you can apply, and when it comes into effect. We’ve pulled together some common questions and answers to help you navigate this and what it means for your business and team. 

As an employee, you will receive your JobKeeper payments exactly like your salary or wages. Once you receive it, it has to be included in your income statement. The inclusion will either be in the form of an allowance or wages and salary according to your pertinent circumstances. Different businesses need to include their JobKeeper payments differently. Here is how:

    • If your business is a company, trust, or partnership you will receive JobKeeper payments. In that case, you don’t have to include the same as your assessable income in your individual tax return. However, integrating it as part of your company’s income is imperative.
    • You must include your JobKeeper payments as your business income if you are a sole trader. You must include the same in your individual tax return.

The Australian Taxation Office (ATO) had declared this until recently in light of the Covid-19 crisis.

    1. Include Each of Your incomes

While lodging your Individual Tax Return do include all the incomes which you’ve earned during that financial year. These chiefly include:

    • Your Bank interest
    • Miscellaneous income
    • Business income
    • Payments received from Centrelink and
    • Your wages and salary

You don’t have to pay taxes on the amounts you had received from your early access to superannuation for Covid-19. You also don’t need to include these amounts in your tax return. Different tax rules apply to payments which you have received from your employer for certain reasons. This can either be if you’ve lost your job, taken leave, or have been stood down.

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To get more information contact a top-notch Tax Accountant Perth Australia. Your Tax Advisor Perth has the knowledge and expertise to prepare and lodge your tax return according to these changes. So, to complete your Business Tax Return faultlessly hire a tax agent in Perth right away!