ATO’s support and guidance to make tax time easier

The ATO’s Tax Time 2020 page for tax professionals covers key changes this tax time, the ATO’s service commitment, what you can do to prepare, and things to consider before lodging to ensure your clients’ tax returns are correct and to help prevent delays in processing.

Key changes this tax time include:

• COVID-19 measures and support – individuals
• COVID-19 measures and support – business and employers
• net medical expenses for disability aids, attendant care or aged care
• no deductions for vacant land
• stapled structures
• international taxation – hybrid mismatch rules
• expanding tax incentives for investments in affordable housing
• death benefit increase deduction
• non-arm’s length income (NALI)
• CGT small business concessions – Partnerships
• SMSF instructions
• improved reporting for trusts
• Single Touch Payroll – changes to end-of-financial-year processes

The ATO has also released its Tax Time Essentials page which is a one-stop-shop for individuals highlighting the things that are a little different this year and how they impact the return. Assistant Commissioner Karen Foat said that the ATO has a range of different approaches to support taxpayers and the community through this tax time. The ATO expects to see a substantial increase in people claiming deductions for working from home or for protective items required for work, and clarified that taxpayers could not claim the cost of travelling to and from work and working from home as a result of COVID-19. With more people working from home, working reduced hours or unfortunately not working at all, the ATO expects to see claims for laundry expenses or travel expenses decline this year.