Australians may get big tax refunds this year with ATO changes

The Australian Tax Office has made a number of sweeping changes that could lead to a bigger tax refund for thousands of Aussies.  

The changes have been made to make filing a tax return easier, ATO assistant commissioner Karen Foat said, particularly for those who have been impacted by bushfires or coronavirus. 

If you have worked from remotely during the coronavirus pandemic, the ATO has provided a simple way to calculate your deductions. 

When declaring your deductions you can claim an automatic ‘COVID-hourly rate’ for the hours you worked form home. 

The changes have been made to make filing a tax return easier, ATO assistant commissioner Karen Foat said, particularly for those who have been impacted by bushfires or coronavirus 

If you have worked from home remotely during the coronavirus pandemic, the ATO has provided a simple way to calculate your deductions 

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This option can be used by multiple people working in the same house. 

You can also calculate your individual expenses and declare them if you think this will earn you a bigger refund. 

Ms Foat said that those who accessed their superannuation funds early during the coroanvirus pandemic did not need to include the money in their tax return. 

‘If you received early access to your super this year under the special arrangements due to COVID-19, any amounts you’ve withdrawn from super under this program are tax-free and you do not need to declare them in your tax return,’ Ms Foat said. 

Australians who have been working on the frontline battling either the bushfires or coronavirus are also entitled to claim protective equipment as a deduction. 

‘Taxpayers working in jobs that require physical contact or close proximity with customers or clients during COVID-19 measures may be able to claim a deduction for items such as gloves, face masks, sanitiser or anti-bacterial spray if they have paid for the items and not been reimbursed,’ Ms Foat said. 

It means that retail and hospitality workers as well as health workers can claim money back for their equipment.

However, Ms Foat pointed that if you have been working from home and not wearing your work uniform you cannot claim laundry expenses or travel expenses. 

When claiming any deductions there are three rules to remember, Ms Foat said.

‘You must have spent the money and not have been reimbursed, it must relate directly to earning your income, and you must have a record to prove it,’ she said.

Both JobSeeker and JobKeeper payments will be included as salary or wages and allowances in your tax return – with the information being provided to the ATO by employers. 

Sole traders will need to declare JobKeeper payments as assessable income for their business. 

Any lump sum payments for being stood down or redundancy packages will also need to be declared. 

Both JobSeeker and JobKeeper payments will be included as salary or wages and allowances in your tax return – with the information being provided to the ATO by employers