On 16 February 2023, the ATO issued Practical Compliance Guideline PCG 2023/1 in relation to deductions for working-from-home related expenditure. The new rules actually apply from 1 July 2022. Working from home deductions before 1 July 2022 There were 3 choices: The shortcut method – which was available from 1 March 2020 to 30 June 2022; The fixed-rate method – which was available from 1 July 1998 to 30 June…  Read more

Tax deductibility of COVID-19 test expenses After much speculation, the Government announced that COVID-19 tests, including Polymerase Chain Reaction (‘PCR’) and Rapid Antigen Tests (‘RATs’), will be both:    tax-deductible; and    exempt from FBT; broadly where they are purchased for work-related purposes. This will require the introduction of new specific legislation (i.e., to clarify that work-related COVID- 19 test expenses incurred by individuals will be tax-deductible or FBT exempt…  Read more