Australians are being told to look closely at their taxes this year and see how COVID has affected their deductions and returns.
The biggest difference this year would understand what can be claimed as a work-related expense and properly declaring COVID support payments, the Australian Taxation Office (ATO) said.
For the first time, taxpayers who purchased a COVID test for work-related purposes after July 1, 2021, can claim the trial as a deduction.
Camera IconWorkers who have purchased Covid tests, face masks, and other personal protective equipment for work-related purposes may claim the cost as a tax deduction. NCA NewsWire / David Geraghty. Credit: News Corp Australia
Work-related reasons include taking a test to determine whether you can come to work. Only work-related difficulties paid for by the employees and not reimbursed can be claimed.
“If you bought a COVID-19 test for a trip with your friends, you can’t claim a deduction,” said ATO Assistant Commissioner Tim Loh.
Deductions are also available for items that protect against catching or spreading COVID at work – if there is a significant risk to you or others.
Face masks can be claimed if you have to go to your workplace or come into contact with other people.
For other protective items, such as gloves, sanitizer, or antibacterial spray, you can only claim these if you work closely with clients or clients or clean a property.
“This will be most common in retail, cleaning, and hospitality sectors,” explains M.r Loh.
As always, proof of purchase is required to claim a deduction — preferably a receipt or invoice — although the ATO will accept “reasonable evidence,” such as a bank or credit card statement or proof from an employer.
Camera IconAussies that have received Covid support payments may need to declare them for tax purposes. NCA NewsWire/James Gourley Credit: News Corp Australia
Those who received various financial aid during the pandemic also need to know what is taxable and what is not.
Payments from Job Seekers are taxable and automatically added to the forms of those who receive them; however, documents can also be submitted before the information is added, which must be added manually.
The Commonwealth COVID-19 flat rate compensation paid to help some employees who cannot earn income during COVID-19 lockdowns is not taxable and does not need to be included in the tax return.
The Pandemic Leave Disaster Payment is taxable and must be added manually for all payments made within the fiscal year.
“While the information is not pre-populated for you, failing to add pandemic leave disaster payments to your tax return will delay the processing of your return and your potential refund,” said Mr. Loh.
The ATO said that taxpayers who have used a third party to pay their taxes should notify them that they have received the disaster payment for the pandemic leave.
