working from home

Working from home? Here are the deductions you can claim!

by with No Comment News

Australians are working from home, now more than ever with the Covid-19 Pandemic going on. According to the Australian Bureau of Statistics (ABS), 2 in 5 people with a job (41%) worked from home at least once a week in February 2021 alone, which is a significant increase from the 24% which were working from home once in a week before March 2021.

If you want to optimise your tax return, read our blog “How to get the most out of your tax return for 20/21“ for a summary.

Working from home is the new normal for many people this year as the pandemic has changed the way we work. If you have been working from home in the last financial year, then keep reading to find out what deductions you can claim in your tax return as there have been changes made to the expenses you can claim as deductibles.

Following are some of the expenses you can claim if working from home.

  • If you are working from home and have an exclusive area set for your activities, you may be able to claim for both occupancy and running expenses.
  • Working from home occasionally does not make you entitled to occupancy expenses and deductibles even if you have a set area for your work at home.
  • You can claim electricity expenses such as, heating, cooling, lighting of the area where you work and items you run while working. You cannot claim for periods when your work space is used for other purposes.
  • Cleaning costs can also be claimed for a set work area.
  • Home office equipment, such as computers, printers and telephones can be claimed as the full cost (for items costing up to $300), or depreciation cost (for items above $300).
  • You can also claim a portion of your phone call expenses, including mobile phone and phone rentals if you can prove the share of your work related use.
  • You can claim for a decline in value and depreciation of home office furniture and equipment to the extent that it relates to your work.
  • Other deductibles include
    • Computer consumables, such as printer ink.
    • Stationary
    • Repair and maintenance

It is important to talk to your accountant, or the ATO and keep record of your spending, if you are unsure about a particular expense.

For more information on what expenses you can claim when working from home, visit the ATO website here.

Preparation_Tax_Return_Pherrus

How to get the most out of your tax return for 20/21

by with One Comment NewsUncategorized

Aussie Taxpayers, its that time of the year again. Its officially tax time of the year, which means some Aussies may cop a small fortune while some are left with few pennies. However, there are some strategies that may help you make the most of your tax return. These strategies save you a few extra dollars in your account and could earn you a little bump in your tax return.

Keep record of your spending

  • Keep track of your spending for the entire financial year. It sure is a bit of a lost if you haven’t been holding on the receipts for the year. But keep that in my mind from today.
  • You do not need to keep records of literally everything. Australian Taxation Office has provided a limitation on how much tax deduction you can claim without proper documents. As an example, you do not need to provide receipts to claim 5,000 kilometres worth of petrol.
  • ATO’s myDeduction app helps in keeping record of your receipts for the year-ends calculations.

As you get into the habit of recording your spending, you will be able to claim for more than you would without proper documentation.

Understand the deductibles and non-deductibles

  • You need to be aware of what expenses you can claim. The list is pretty long which can be checked with the ATO.
  • There are a number of portions that you can claim as deductibles while still working from home such as, electricity, internet and phone bills.
  • Following rules by the ATO helps in figuring out what can be claimed as a deductible:
  • Money has been spent by yourself and were not reimbursed.
  • Spending was directly related to earning your income.
  • Keep records to prove it.

Know when to make tax-deductible purchases

  • Buying tax-deductible assets at the end of the financial year is pointless, as it will not produce enough deductions. If the assets are bought at the beginning of the financial year, the depreciation on the asset have much more impact if it is spread over a year.

Plan where to spend your refund

  • Now that you have a noticeable refund on your hand, blow it on some of the important things, such as, pay off some debts, put it into your saving account and save for your goals.

For more information on how to lodge your tax return, visit the ATO website.

Fed Budget

Federal Budget Recap: 21-22

by with No Comment News

Treasurer Josh Freedenberg announced the second post pandemic federal budget despite the
posed uncertainty. The new budget is formulated again prioritizing investments and jobs and
bringing back employment opportunities after the beating by COVID-19 in the past two years.

The budget includes tax related measures for businesses and some positives for individual tax
payers. The budget is also encouraging spending on various levels and promoting support for
Aged care and child care, Education, Real Estate, Agriculture and Infrastructure.

The newly formulated budget is continuing to encourage first home buyers like last year to take
the jump into the housing market. The government plans to assist another 10,000 first home
buyers with a 5% deposit. It has also increased the amount to be released from $30,000 to
$50,000 under the First Home Super Saver Scheme. Some of the Key announcement in the
latest budget includes:

– The low and medium tax-offsets to be extended- They will receive $1,080 or $2,160 for
couples that will subsequently contribute to be spent across the economy and creating
jobs.
– Cash deficit forecasts- indicating to reach $161 billion this year falling to $57 billion by
2024-25. Net debt to increase by 30% of GDP and peak at 41% by 2025.
– Reformed individual tax residency rules
– Introduced a new patent box regime- Income from medical and biotech patents to be
eligible for 17% tax rate
– Affordable childcare to reduce work barriers
– Extended Temporary Full Expensing to 12 months
– Focus on productivity, national freight and supply chain
– Gender lens- Target safety and economic security
– $450 per month as the minimum income threshold for super guarantee to be removed

 

For a detailed report, click here.

cadbury

Cadbury and the Colour Purple

by with No Comment All about TrademarksCase StudyNews

Cadbury’s trademark application back in 1995 was for the colour purple, particularly the shade PANATONE 2685C. It was registered under goods as “chocolate in bar or tablet form” described as “The mark consists of the colour purple, as shown on the form of application, applied to the whole visible surface, or being the predominant colour applied to the whole visible surface, of the packaging of the goods”.

Nearly two decades later, in 2013 the chocolatier has a major setback when they applied for new trademark to include a wider range of products such as drinking chocolates, cakes and such! What’s wrong with that, you ask? The application was opposed by none other than Nestle!

The application was not only for its chocolate products but also for the colour purple, just like their application back in 1995 but Nestle contended on the basis that the colour purple “had no distinctive character, and was too broad for a range of goods”.

The UK Court of Appeal corresponded by rejecting the application.

The court found issue with the wording: “Being the predominant colour applied to the whole visible surface of the packaging goods” as it felt the term ‘predominant’ was too broad. This may have been acceptable in 1995, but trademark applications are more highly regulated nowadays.

What did Cadbury do? in 2018 they appealed to remove the second mark of their application which used the word “predominant”, eventually losing the case and placing their trademark at a state of risk. Backed into a corner, Cadbury could drop the trademark completely with the alternate being starting a brand new trademark application.

Cadbury said that it will continue to protect what it believes is a distinctive trademark, using unregistered rights.

If this case teaches us anything, its the importance of making a clear and concise trademark application.