Tax time targets To claim a deduction, you need to have incurred the expense yourself and not been reimbursed by your employer or business, and the expense needs to be directly related to your work. What expenses are related to work? You can claim a deduction for all losses and outgoings “to the extent to which they are incurred in gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income.” That is, there must be a nexus between the expenses you are claiming and how you earn your income. It all sounds simple enough until you start applying this rule. Take the example of an actor. To land the acting job she needs to attend auditions. She wants to claim the cost of having her hair and make-up done for the audition. But, because she is not generating income at the stage of the audition, she cannot claim her expenses. The expense must be related to how you are currently earning your income, not future potential income. The same issue applies to upskilling. If you attend investment seminars with the intention of building your investment portfolio the seminar is not deductible as a self-education expense unless it relates to managing your existing investment portfolio — not a future one. Or, a nurse’s aide who attends university to qualify as a nurse. The university degree and the expenses associated with this are not deductible as the nursing degree is not required to fulfil the role of a nurse’s aide. The second area of confusion is over what can be claimed for work. If the item is “conventional” it’s unlikely to be deductible. For example, you can't claim conventional clothing (including footwear) as a work-related expense, even if your employer requires you to wear it and you only wear the items of clothing at work. To be deductible clothing must be protective, occupation-specific such as a chef’s chequered pants, a compulsory uniform or a registered non-compulsory uniform. Work-related or private? Another area of confusion is where expenses are incurred for work purposes but used privately. Internet access or mobile phone services are typical. A lot of people take the view that the expense had to be incurred for work so what does it matter if it’s used for private purposes? But, if you use the service on more than an ad-hoc basis for any purpose other than work, then the expense needs to be apportioned and only the work-related percentage claimed as a deduction. And yes, the ATO does check usage in an audit. Claims for COVID-19 tests will be a test of this rule. COVID-19 tests are deductible from 1 July 2021 if the purpose was to determine whether you may attend or remain at work. The tax deduction does not apply if you worked from home and didn’t intend to attend your workplace, or the test was used for private purposes (for example, to tests the kids before school). Claiming work from home expenses Last financial year, one in three Australians claimed working from home expenses. Now we’re out of the pandemic, the ATO will be focussing specifically on what is being claimed. If you claimed work from home expenses last year and returned to the office this year, then there should be a reduction in your work from home claim. The ATO will be looking for discrepancies. If you are claiming your expenses, there are three methods you can use: The ATO’s simplified 80 cents per hour short-cut method – you can claim 80 cents for every hour you worked from home from 1 March 2020 to 30 June 2022. You will need to have evidence of hours worked like a timesheet or diary. The rate covers all of your expenses and you cannot claim individual items separately, such as office furniture or a computer. Fixed rate 52 cents per hour method – applies if you have set up a home office but are not running a business from home. You can claim 52 cents for every hour and this covers the running expenses of your home. You can claim your phone, internet, or the decline in value of equipment separately. Actual expenses method – you can claim the actual expenses you incur (and reduce the claim by any personal use and use by other family members). You will need to ensure you have kept records such as receipts to use this method. It’s this last method, the actual method, the ATO is scrutinising because people using this method tend to lodge much higher claims in their tax return. Ineligible expenses include: Personal expenses such as coffee, tea and toilet paper Expenses related to a child’s education, such as online learning courses or laptops Claiming large expenses up-front (instead of claiming depreciation for assets), and Occupancy expenses such as rent, mortgage interest, property insurance, and land taxes and rates, cannot generally be claimed by employees working from home (especially by those who are working from home solely due to a lockdown). The ATO has flagged four priority areas this tax season where people are making mistakes. With tax season upon us the Australian Taxation Office (ATO) has revealed its four areas of focus this tax season. Record-keeping Work-related expenses Rental property income and deductions, and Capital gains from crypto assets, property, and shares. In general, there are three ‘golden rules’ when claiming tax deductions: You must have spent the money and not been reimbursed. If the expense is for a mix of work-related (income producing) and private use, you can only claim the portion that relates to how you earn your income. You need to have a record to prove it. How to contact us We’re available to assist you with tax planning including tax deductions. Contact Collins Hume Accountants & Business Advisers in Ballina or Byron Bay on 02 6686 3000. Read more tax planning topics here »

101 of working with the ATO is that you can’t claim it if you can’t prove it If you are audited, the ATO will disallow deductions for unsubstantiated or unreasonable expenses. Even if the expense is below the substantiation threshold of $300 ($150 for laundry), the ATO might ask how you came up with that number. For example, if you claim $300 in work-related expenses (that is, make a claim right up to the substantiation threshold), how did you come up with that number and not something else? In addition to the obvious records of salary, wages, allowances, government payments or pensions and annuities, you need to keep records of: Interest or managed funds. Records of expenses for any deductions claimed including a record of how that expense relates to the way you earn your income. That is, the expense must be related to how you earn your income. For example, if you claim the cost of RAT tests, you need to be able to prove that the RAT test was necessary to enable you to work. If you were working from home and not required to leave home, it will be harder to claim the cost of the test. Assets such as shares or units in a trust, rental properties or holiday homes, if you purchased a home or inherited a property, or disposed of an asset (including cryptocurrency). You need to keep your records for five years. These can be digital copies of the records as long as they are clear and legible copies of the original. If your records are digital, keep a backup. Records can be tax invoices, receipts, diary entries or something else that proves you incurred the expense and how it related to how you earn your income. The ATO has flagged four priority areas this tax season where people are making mistakes. With tax season upon us the Australian Taxation Office (ATO) has revealed its four areas of focus this tax season. Record-keeping Work-related expenses Rental property income and deductions, and Capital gains from crypto assets, property, and shares. In general, there are three ‘golden rules’ when claiming tax deductions: You must have spent the money and not been reimbursed. If the expense is for a mix of work-related (income producing) and private use, you can only claim the portion that relates to how you earn your income. You need to have a record to prove it. How to contact us We’re available to assist you with tax planning including tax deductions. Contact Collins Hume Accountants & Business Advisers in Ballina or Byron Bay on 02 6686 3000. Read more tax planning topics here »

The 120% deduction for skills training and technology costs It’s a great headline, isn’t it? Spend $100 and get a $120 tax deduction. Days after the Federal Budget announcement that businesses will be able to claim a 120% deduction for expenditure on training and technology costs, we started receiving emails encouraging us to spend now to access the deduction. But, there are a few problems. Firstly, the announcement is just that, it is not yet law. And, given the Government is in caretaker mode for the Federal election, we do not know the position of the incoming Government on this measure. And, even if the incoming Government is supportive, we are yet to see draft legislation or detail to determine the practical application of the measure. What was announced? The 2022-23 Federal Budget announced two ‘Investment Boosts’ available to small businesses with an aggregated annual turnover of less than $50 million. The Skills and Training Boost is intended to apply to expenditure from Budget night, 29 March 2022 until 30 June 2024. The business, however, will not be able to claim the deduction until the 2023 tax return. That is, for expenditure between 29 March 2022 and 30 June 2022, the boost, the additional 20%, will not be claimable until the 2022-23 tax return, assuming the announced start dates are maintained if and when the legislation passes Parliament. The Technology Investment Boost is intended to apply to expenditure from Budget night, 29 March 2022 until 30 June 2023. As with the Skills and Training Boost, the additional 20% deduction for eligible expenditure incurred by 30 June 2022 will be claimed in the 2023 tax return. The boost for eligible expenditure incurred on or after 1 July 2022 will be included in the income year in which the expenditure is incurred. Technology Investment Boost A 120% tax deduction for expenditure incurred by small businesses on business expenses and depreciating assets that support their digital adoption, such as portable payment devices, cyber security systems, or subscriptions to cloud-based services, capped at $100,000 per annum. We have received a lot of questions about the specific expenditure the boost might apply to, for example does it cover website development or SEO services? But until we see the legislation, nothing is certain. Skills and Training Boost A 120% tax deduction for expenditure incurred by small businesses on external training courses provided to employees. External training courses will need to be provided to employees in Australia or online, and delivered by entities registered in Australia. Some exclusions will apply, such as for in-house or on-the-job training and expenditure on external training courses for persons other than employees. We are waiting on further details of this initiative to be released to confirm whether there will need to be a nexus between the training program and the current employment activities of the employees undertaking the course. So once again, until we have something more than the announcement, we cannot confirm how the measure will apply in practice or how broad (or otherwise) the definition of skills training is. What happens if I have already spent money on training and technology in anticipation of the bolstered deduction? If the measure becomes law, and the start date of the measure remains the same, we expect that any qualifying expenditure incurred in the 2021-22 financial year will be claimed in your tax return. But, the ‘boost’, the extra 20% will not be claimable until the 2022-23 financial year. If the measure does not come to fruition, you should be able to claim a deduction under normal rules for the actual business expense. How to contact us We’re available to assist you with tax planning including tax deductions. Contact Collins Hume Accountants & Business Advisers in Ballina or Byron Bay on 02 6686 3000. Read more tax planning topics here »

A series of reforms and changes will commence on 1 July 2022. Here’s what is coming up: For business Superannuation guarantee increase to 10.5% The Superannuation Guarantee (SG) rate will rise from 10% to 10.5% on 1 July 2022 and will continue to increase by 0.5% each year until it reaches 12% on 1 July 2025. If you have employees, what this will mean depends on your employment agreements. If the employment agreement states the employee is paid on a ‘total remuneration’ basis (base plus SG and any other allowances), then their take home pay might be reduced by 0.5%. That is, a greater percentage of their total remuneration will be directed to their superannuation fund. For employees paid a rate plus superannuation, then their take home pay will remain the same and the 0.5% increase will be added to their SG payments. $450 super guarantee threshold removed From 1 July 2022, the $450 threshold test will be removed and all employees aged 18 or over will need to be paid superannuation guarantee regardless of how much they earn. It is important to ensure that your payroll system accommodates this change so you do not inadvertently underpay superannuation. For employees under the age of 18, super guarantee is only paid if the employee works more than 30 hours per week. Profits of professional services firms The ATO has been concerned for some time about how many professional services firms are structured - specifically, professional practices such as lawyers, accountants, architects, medical practices, engineers, architects etc., operating through trusts, companies and partnerships of discretionary trusts and how the profits from these practices are being taxed. New ATO guidance that comes into effect from 1 July 2022, takes a strong stance on structures designed to divert income in a way that results in principal practitioners receiving relatively small amounts of income personally for their work and reducing their taxable income. Where these structures appear to be in place to divert income to create a tax benefit for the professional, Part IVA may apply. Part IVA is an integrity rule which allows the Tax Commissioner to remove any tax benefit received by a taxpayer where they entered into an arrangement in a contrived manner in order to obtain a tax benefit. Significant penalties can also apply when Part IVA is triggered. A new method of assessing the level of risk associated with profits generated by a professional services firm and how they flow through to individual practitioners and their related parties, will come into effect from 1 July 2022. Professional firms will need to assess their structures to understand their risk rating, and if necessary, either make changes to reduce their risks level or ensure appropriate documentation is in place to justify their position. Lowering tax instalments for small business – PAYG PAYG instalments are regular prepayments made during the year of the tax on business and investment income. The actual amount owing is then reconciled at the end of the income year when the tax return is lodged. Normally, GST and PAYG instalment amounts are adjusted using a GDP adjustment or uplift. For the 2022-23 income year, the Government has set this uplift factor at 2% instead of the 10% that would have applied. The 2% uplift rate will apply to small to medium enterprises eligible to use the relevant instalment methods for instalments for the 2022-23 income year: Up to $10 million annual aggregated turnover for GST instalments, and $50 million annual aggregated turnover for PAYG instalments The effect of the change is that small businesses using this PAYG instalment method will have more cash during the year to utilise. However, the actual amount of tax owing on the tax return will not change, just the amount you need to contribute during the year. Trust distributions to companies The ATO recently released a draft tax determination dealing specifically with unpaid distributions owed by trusts to corporate beneficiaries. If the amount owed by the trust is deemed to be a loan then it can potentially fall within the scope of the integrity provisions in Division 7A. If certain steps are not taken, such as placing the unpaid amount under a complying loan agreement, these amounts can be treated as deemed unfranked dividends for tax purposes and taxable at the taxpayer’s marginal tax rate. The ATO guidance deals specifically with, and potentially changes, when an unpaid entitlement to trust income will start being treated as a loan depending on the wording of the resolution to pay a distribution. The new guidance applies to trust entitlements arising on or after 1 July 2022. For you Home loan guarantee scheme extended The Home Guarantee Scheme guarantees part of an eligible buyer’s home loan, enabling people to buy a home with a smaller deposit and without the need for lenders mortgage insurance. An additional 25,000 guarantees will be available for eligible first home owners (35,000 per year), and 2,500 additional single parent family home guarantees (5,000 per year). Your superannuation Work-test repeal – enabling those under 75 to contribute to super Currently, a work test applies to superannuation contributions made by people aged 67 or over. In general, the work test requires that you are gainfully employed for at least 40 hours over a 30 day period in the financial year. From 1 July 2022, the work-test has been scrapped and individuals aged younger than 75 years will be able to make or receive non-concessional (including under the bring-forward rule) or salary sacrifice superannuation contributions without meeting the work test, subject to existing contribution caps. The work test will still apply to personal deductible contributions. This change will also see those aged under 75 be able to access the ‘bring forward rule’ if your total superannuation balance allows. The bring forward rule enables you to contribute up to three years’ worth of non-concessional contributions to your super in one year. Downsizer contributions from age 60 From 1 July 2022, eligible individuals aged 60 years or older can choose to make a ‘downsizer contribution’ into their superannuation of up to $300,000 per person ($600,000 per couple) from the proceeds of selling their home. Currently, you need to be 65 years or older to utilise downsizer contributions. Downsizer contributions can be made from the sale of your principal residence that you have owned for the past ten or more years. These contributions are excluded from the age test, work test and your total superannuation balance (but not exempt from your transfer balance cap). First home saver scheme – using super to save for a first home The First Home Super Saver Scheme enables first home buyers to withdraw voluntary contributions they have made to superannuation and any associated earnings, to put toward the cost of a first home. At present, the maximum amount of voluntary contributions you can make and withdraw is $30,000. From 1 July 2022, the maximum amount will increase to $50,000. The benefit of this scheme is the concessional tax treatment of superannuation. How to contact us We’re available to assist you with tax planning including tax deductions. Contact Collins Hume Accountants & Business Advisers in Ballina or Byron Bay on 02 6686 3000. Read more tax planning topics here »

Director Penalty Notices Throughout March, the ATO sent letters to directors who are potentially in breach of their obligations to ensure that the company they represent has met its PAYG withholding, superannuation guarantee charge, or GST obligations. These letters are a warning shot and should not be ignored. The director penalty regime ensures that directors are personally liable for certain debts of the company if the debts are not actively managed. The liability applies to both current and former directors. To recover this debt, the ATO will issue a director penalty notice to the individual directors. The ATO can then take action to recover the unpaid amount, including: By issuing garnishee notices, By offsetting tax credits owed to the director against the penalty, or By initiating legal recovery proceedings against the director. In some cases it is possible for the penalty to be remitted but this depends on when the PAYGW, GST or SGC amounts are reported to the ATO. For example, in some cases the penalty can be remitted if an administrator or small business restructuring practitioner is appointed to the company, or the company begins to be wound up. However, this is normally only possible for PAYGW and GST amounts if they are reported to the ATO within 3 months of the due date. For SGC amounts this is only possible if the unpaid amount is reported by the due date of the SGC statement. If the unpaid amounts are not reported to the ATO by the relevant deadline then the only way for the penalty to be remitted is for the debt to be paid in full. Winding up the company at this stage will not make the liability of the directors go away. If you have received a warning letter from the ATO or a director penalty notice then please contact Collins Hume immediately on 02 6686 3000.

Further assistance for anyone affected or impacted by flooding Watch this post for updates and additions as our team locates and verifies further sources of disaster recovery information. Any new information is flagged with 🆕 First response Australian Government Disaster Recovery Payment » Grants for bank customers affected by floods » Recovery centres Dedicated community recovery centres provide face-to-face support for NSW residents affected by natural disasters: https://www.service.nsw.gov.au/floods/recovery-centres Individual and household assistance National Australia Bank (NAB) is donating 1,000 4-year-old laptops to those in need in the Northern Rivers region https://docs.google.com/forms/d/e/1FAIpQLScFkufsaOemCjML3ZDWffgW-ltic9NO-qHl6c2-Fy_goFZO8w/viewform Low income no insurance https://www.nsw.gov.au/resilience-nsw/disaster-relief-grant-for-individuals Australia Post 12-month redirection https://auspost.com.au/receiving/manage-your-mail/redirect-hold-mail/redirect-mail/free-mail-redirection-and-po-boxes Child care subsidy relief for financial hardship https://www.servicesaustralia.gov.au/how-to-apply-for-additional-child-care-subsidy?context=41866 National Debt helpline https://ndh.org.au/ Telstra customers can find out more about how to register for a Disaster Assistance Package, including getting additional data, at telstra.com/disasterassist or by calling 1800 888 888 For Telstra outage information and restoration updates visit outages.telstra.com.au Red Cross Bereavement and Relief grants for people affected by either the Queensland or New South Wales floods in 2022 — applications opened 18 March 2022 https://www.redcross.org.au/grants/ St Vincent de Paul Society is offering financial assistance of up to $3,000 depending on the level of damage, the size of the family, and insurance status https://www.vinnies.org.au/.../Fin.../NSW/Disaster_Recovery/ Property assistance Factsheet for tenants affected by disaster https://www.tenants.org.au/factsheet-22-disaster-damage Business and workplace assistance $10,000 small business Northern NSW flood grant https://www.collinshume.com/post/10-000-small-business-northern-nsw-flood-grant NSW Storm and flood disaster recovery small business grant https://www.service.nsw.gov.au/transaction/apply-february-and-march-2022-storm-and-flood-disaster-recovery-small-business-grant NSW guide to recovering from a disaster https://www.smallbusiness.nsw.gov.au/resources/get-back-business-guide-recovering-disaster Relief and support for flood victims https://www.businessaustralia.com/how-we-help/be-more-efficient/work-smarter/relief-and-support-for-flood-victims Payroll Tax assistance https://www.revenue.nsw.gov.au/news-media-releases/natural-disaster-relief Safe work rebate https://www.nsw.gov.au/grants-and-funding/1000-safework-small-business-rebate Free safe work replacement https://disasterassistance.service.nsw.gov.au/summary/846033/ BizRebuild is offering vouchers to help small businesses affected by the March 2022 storms and floods https://www.bizrebuild.com.au/need-help/help-for-bushfire-affected-communities. Complete an online application at bca.awardsplatform.com Retooling Voucher $2,000 Business Advisory Voucher $500 Rural assistance 🆕 Natural Disaster Transport Subsidy: A natural disaster assistance transport subsidy up to $15,000 is available to eligible farmers affected by a declared natural disaster event. This subsidy pays for the cost of transporting fodder and/or water to an affected property, stock to sale or slaughter or stock to/from agistment https://www.raa.nsw.gov.au/grants/natural-disaster-transport-subsidy Rural Landholders Grant: Applications are open until 30 September 2022. All activities and expenditure funded under this program must be complete, and all invoices to claim payment must be submitted to the RAA by 31 March 2023 https://www.raa.nsw.gov.au/disaster-assistance/storm-and-flood-programs/RLG-feb-2022 Rural Assistance Authority loans and grants https://www.raa.nsw.gov.au/disaster-assistance/declarations Blaze Aid – Assistance with fencing repairs https://blazeaid.com.au/how-to-get-fencing-help/ DPI – flood assistance with livestock https://www.dpi.nsw.gov.au/emergencies/emergency/floods/current-situation Financial Counselling https://recovery.gov.au/rural-financial-counselling-service-locations#/map Transport and licencing Free of charge reissue of licences https://www.service.nsw.gov.au/floods/identification-licences-and-personal-documents Free replacement of licence https://www.service.nsw.gov.au/floods/driving-and-transport Stamp duty refund for vehicles written off https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/motor-vehicle-duty/relief QLD Financial assistance Financial assistance is available for eligible flood-affected communities from both the Queensland and Australian Governments. Personal Hardship Financial Assistance is available for Brisbane, Fraser Coast, Gladstone, Gold Coast, Gympie, Ipswich, Lockyer Valley, Logan, Moreton Bay, Noosa, North Burnett, Somerset, and Sunshine Coast and includes: Emergency Hardship Assistance Grants to support people directly impacted by a disaster who are unable to meet their immediate essential needs for food, clothing, medical supplies or temporary accommodation. Eligible applicants may receive $180 per person up to $900 for a family of five or more. For more information, contact the Community Recovery Hotline on 1800 173 349 or visit www.qld.gov.au/community/disasters-emergencies Essential Household Contents Grants of up to $1765 for single adults and up to $5,300 for couples/families. These grants are for those who are uninsured, or unable to claim insurance. If eligible you may receive financial assistance towards replacing or repairing essential household contents, such as beds, linen and white goods, that have been lost or damaged in a disaster Australian Government Disaster Recovery Payment provides a lump sum payment for eligible people adversely affected by the South East Queensland floods. Disaster Recovery Allowance (Australian Government) is a short-term payment to help people who have lost income as a direct result of the floods in South East Queensland QLD Essential Services & Safety if you’re uninsured, or unable to claim insurance, you may be eligible for a grant to help you reconnect essential services that were damaged by a disaster https://www.qld.gov.au/community/disasters-emergencies/disasters/money-finance/types-grants/essential-serv-safety-reconnect Please contact each support agency directly about accessing their flood recovery assistance. Last updated 25/5/22

There are lots of reasons to keep fit but very few of them have to do with how we earn our income. As a result, a tax deduction for a gym membership isn’t available to most people. And yes, the Tax Office has heard all the arguments before about how keeping fit reduces sickness and therefore is important to earning an income, and ‘…the way I look is important to my job’. In general, a tax deduction for fitness expenses is only available if your job requires you to have an extremely high level of fitness. The nexus between how you earn your income and the deduction is about the physical demands and requirements of your specific role. Firefighters are a case in point. A person with what the ATO describes as a “general duties firefighter” role cannot claim a deduction for the money they have spent keeping fit, but a firefighter in a specialist search and rescue operations team for example, trained in a range of specialist skills including structural collapses and tunnel emergencies, and who is tested on fitness and ongoing strenuous physical activity as an essential part of their job, would be able to claim fitness expenses. Similarly, a professional ballet dancer is likely to be able to claim their fitness expenses. A model however, might not be able to claim their expenses as, while they need to look a particular way, their modelling role does not require physical training and exertion (clearly the ATO has not seen some of the poses that models have to hold!). So, access to a deduction is about the specialist physical demands and requirements of your role. A recent case before the administrative appeals tribunal (AAT) explored the boundary of who can claim fitness expenses, confirming that a prison dog handler could claim a deduction for the cost of his gym membership. In this case, the dog handler was responsible for training and maintaining two dogs. He was required to be available to assist in emergencies that might arise. While these emergencies didn’t arise often, the handler had to be prepared for the possibility of an emergency arising at any time. Reaching this decision, the AAT noted the handler: Was required to maintain a high degree of anaerobic fitness (including muscle strength sufficient to control a large German shepherd on a lead in a volatile situation); Was required to maintain a high degree of aerobic fitness (that is, a degree of speed and agility sufficient to enable him to move effectively with, and control and direct, his dog in an emergency); and Must also be prepared to restrain prisoners himself. While the employer in this case did not specify any particular level of fitness for the dog handler role, the AAT held that a superior level of fitness was implicitly demanded. However, it did not all go the way of the dog handler. His claim for supplement expenses, travel to and from the gym, and gym clothing was denied. While some commentators have suggested that the floodgates are now open for gym membership claims, as always, the devil is in the detail. To claim a tax deduction for fitness expenses it is generally necessary to be part of a specialist workforce. Police Officers for example cannot generally claim fitness expenses despite the fact that, like the dog handler in the AAT case, they need to respond quickly to emergencies and may need to subdue people. Unless they are part of a specialist response unit that is required to have a specific, high level of fitness, they are unlikely to be able to claim their gym membership expenses. So, for the rest of us, gym memberships will continue to be a labour of self-love and care and not an essential part of how we earn our income. How to contact us We’re available to assist you with tax planning including tax deductions. Contact Collins Hume Accountants & Business Advisers in Ballina or Byron Bay on 02 6686 3000.

Reduction in fuel tax credit rates The Government temporarily halved the excise and excise equivalent customs duty rates for petrol, diesel and all other petroleum-based products (except aviation fuels) for 6 months from 30 March 2022 until 28 September 2022. This has caused a reduction in fuel tax credit rates. During this 6 month period, businesses using fuel in heavy vehicles for travelling on public roads won't be able to claim fuel tax credits for fuel used for this purpose. This is because the road user charge exceeds the excise duty payable, and this reduces the fuel tax credit rate to nil. You can find the ATO’s updated fuel tax credit rates that apply for the period from 30 March 2022 to 30 June 2022 here. The ATO’s fuel tax credit calculator has been updated to apply the current rates. How to contact us We’re available to assist you with tax planning including tax deductions. Contact Collins Hume Accountants & Business Advisers in Ballina or Byron Bay on 02 6686 3000.

Collins Hume will be running a series of business workshops in June to support local business owners during what has been a very challenging time in the region Four workshops — called Recover. Rediscover. Reimagine — are being presented by Collins Hume Partners Christopher Atkinson and Peter Fowler. Each is a short 2-hour session designed to inspire business owners to achieve business and lifestyle success in powerful and meaningful ways. Workshop registrations are now open and places can be booked online at https://www.collinshume.com/events. Despite local businesses doing it tough, Chris Atkinson believes there is a kernel of resilience worth reigniting. Chris, Peter and the Collins Hume team have been working with hundreds of business owners across the Northern Rivers region to help them stabilise with flooding disaster assistance after a horrendous few months. Four Recover. Rediscover. Reimagine. workshops will be held in the Spinnaker Room at Ballina RSL on 21 and 23 June so attendees can choose a workshop session time to suit. “Following two years of COVID-19 and now the worst floods in living memory in our area, we know that as a small business ourselves, business owners need to either recover, rediscover or reimagine and get back on their feet.” “We will talk about business and life purpose, resiliency and innovation and we’re offering workshop spots to both Collins Hume clients and members of the general public.” Each Recover. Rediscover. Reimagine. workshop will encourage attendees to think about their businesses and be inspired to get practical, reinvigorate as part of a vibrant supportive community and kickstart with a positive mindset. Workshop places are being charged a nominal $47 per person and 100% of ticket proceeds will be donated to those affected by floods.

COVID-19 test expenses From 1 July 2021, if you're an employee, sole trader or contractor and you pay for a COVID-19 test for a work-related purpose, you can claim a deduction. When you can claim COVID-19 testing From 1 July 2021, to claim a deduction for the cost you incur to pay for a COVID-19 test, you must: use the test for a work-related purpose, such as to determine if you can attend or remain at work get a qualifying COVID-19 test, such as a polymerase chain reaction (PCR) test through a private clinic other tests in the Australian Register of Therapeutic Goods, including rapid antigen test (RAT) kits pay for the test yourself (that is, your employer doesn't give you a test or reimburse you for the cost) keep a record to prove that you incurred the cost (usually a receipt) and were required to take the test for work purposes. You can only claim the work-related portion of your expense on COVID-19 tests. For example, if you buy a multipack of COVID-19 tests and use some for private purposes (such as by other family members or for leisure activities), you must only claim for the portion of the expense you use for a work-related purpose. When you can't claim COVID-19 testing You can't claim the cost of a COVID-19 test where any of the following apply: you use the test for private purposes – for example, to test your children before they return to school or daycare you receive a reimbursement for the expense from your employer or another person you work from home and don't intend to attend your workplace. You also can’t claim a deduction for the travel or parking expenses you incur to get your COVID-19 test because these expenses don't have a sufficient connection to you using a COVID-19 test. Keeping records for COVID-19 tests You need to keep records of COVID-19 tests to demonstrate that you paid for the test and the test was required for work-related purposes. This may include a receipt or invoice, and correspondence from your employer stipulating the requirement to test. If you don't have a record of your expenses before the law changed on 31 March 2022, the ATO will accept reasonable evidence of your expenses. Reasonable evidence is documentation that shows the cost of the test and the requirement to take it for work purposes. This may include: bank and credit card statements a diary or other documents, including receipts, that show a pattern of buying COVID-19 tests after the law change that could reasonably have applied from 1 July 2021. How to contact us We’re available to assist you with tax planning including tax deductions. Contact Collins Hume Accountants & Business Advisers in Ballina or Byron Bay on 02 6686 3000. Source: ATO

Applications now open for one-off $10,000 small business northern flood grants If your small business or not-for-profit organisation in Northern NSW was impacted by storms and floods in February and March 2022, you may be eligible for a one-off $10,000 small business northern flood grant. Applications close on 31 July 2022. Apply online here » Your small business or not-for-profit organisation must be physically located and operating in one of the following highly impacted Northern Rivers local government areas (LGAs) to be eligible: Ballina Byron Clarence Valley Lismore Kyogle Richmond Valley Tweed Shire. This grant is to help pay for your business’ operating costs during your immediate recovery period. Covered costs could include, but are not limited to: salaries and wages utilities and rent government fees and charges (including local government rates) financial, legal or other services marketing or communications perishable goods other business costs. Note: If you're unsure about which financial support best suits your situation, you can get a list of NSW flood grants your business may be eligible for by completing a 2-minute questionnaire. Consider your options carefully as you will not be eligible for this grant if you have received any of the following grants: February and March 2022 storm and flood disaster recovery small business grant of up to $50,000 Northern Rivers medium-sized business grant of up to $200,000 – get notified when applications open in mid-May Primary producer special disaster grant of up to $75,000 for the February 2022 NSW floods Rural Landholders Grant of up to $25,000 for the February 2022 NSW floods. A qualified accountant, registered tax agent or registered BAS agent may apply on behalf of your business. Your accountant will need to provide a letter of authority from you to show that they are authorised to act on behalf of your business if they are not listed as an associate on the Australian Business Register. Visit the Service NSW website for full eligibility and application deadlines. Know your options Receiving one grant may make you ineligible for another one, so consider your options carefully. You can get a list of NSW flood grants your business may be eligible for by completing a 2-minute questionnaire. Medium businesses in the highly impacted Northern Rivers LGAs that suffered direct damage from the floods may be eligible for a grant of up to $200,000. Get notified when applications open.

Interview with Nathan Pollock In our latest video, we're delighted to be able to talk with Nathan Pollock from Katapult Design. Katapult Design is a leading global product design and development consultancy with studios in Byron Bay, Sydney and Melbourne. Their award-winning team of industrial designers, product engineers and creative thinkers have over 30 years’ experience developing products from medical and hi-tech electronics to hardware. In our video we ask Nathan only three short questions so, to find out more about Katapult Design, please also visit katapultdesign.com.au. Let's Talk That’s all we focus on: You, your family, your wealth, your business and the legacy you (and we) leave. That’s it. Join Collins Hume on this amazing journey. Copyright 2021. Collins Hume Accountants & Business Advisors | Ballina & Byron Bay