Here are the key changes and new measures when completing 2022 tax returns:
COVID-19 Disaster Payments
The COVID-19 disaster payment is a support given to workers who are adversely affected by state public orders, preventing them from working in their usual employment.
If you received a COVID-19 disaster payment during 2021-22:
- That payment is exempt from income tax, and
- The payment is not included in your tax return
If you received a pandemic leave disaster payment during 2021-22, this must be included in your tax return as income. This payment is a lump sum payment given to workers who can’t work and earn income because either:
- Self-isolation or quarantine at home is required due to COVID-19 by your state, or
- You are caring for someone who needs to be isolated or be quarantined due to COVID-19
More information can be found here.
COVID-19 tests deduction
You can claim a deduction in 2021-22 if you have incurred costs for COVID-19 tests. The test must be work-related, such as determining if you could attend or remain at work.
To claim a deduction, you must have the following records as proof:
- Receipt or anything that proves you incurred the cost, and
- You are required to take the test for work purposes
You can also have a deduction claim for the cost of a COVID-19 test if you required the test to undertake travel away from your home overnight, provided it is work-related.
You can’t claim a deduction for the COVID-19 test if:
- Test is for private purposes
- You worked from home and did not intend to attend your workplace
- Your employer provided the test or provided a reimbursement for the cost of the test
Cost of travelling or of parking to get a COVID-19 test can’t be claimed.
Here are other important details regarding deduction claims for quarantine and testing expenses when travelling on work.
Granny flat arrangements and CGT
A granny flat arrangement gives an eligible person the right to occupy a property for life.
Capital gains tax does not apply when a granny flat arrangement is created, varied, or terminated. An exemption is only applied if:
- The property owner/s are individuals
- One or more eligible people have an eligible granny flat interest in the property
- The owners and the people with the granny flat interest enter into a written and binding arrangement. This granny flat arrangement must not be commercial in nature
Normal CGT rules apply if:
- There is no granny flat arrangement, or
- You are doing something other than creating, varying or terminating the arrangement
Temporary full expensing is until 30 June 2023
The temporary full expensing tax incentive has been extended for eligible businesses until 30 June 2023.
Corporate tax entities using the alternative income test to determine the eligibility for this tax incentive can now include the cost of depreciating assets that are capital works.
Loss carry back offset tool
If you are eligible, you can now use the loss carry back tax offset tool. This helps you calculate the maximum amount of tax offset you can claim. You can utilise this tool to work out if you are eligible to claim the refundable tax offset.
The tax offset tool provides information to include in the labels you need to make your claim in your 2022 company tax return.
Change in tax rate for base rate entities
The corporate tax rate for base rate entities for 2021-22 is 25%.
You may see the full details on the base rate entity company tax rate here.
Company tax return 2022 instructions
Visit the ATO website to read the instructions to help you complete your company tax return 2022.
You may also send us a message at bbsi.admin@beale.net.au if you need assistance with your tax returns.
