As a business owner or professional working from home, you're likely facing the challenge of managing your expenses while ensuring compliance with ATO regulations. Keeping track of deductible expenses and understanding the latest rules can be complex and time-consuming.

This guide is designed to help you navigate the new methods introduced by the ATO for claiming working from home expenses. Learn how to claim your expenses correctly and maximise your deductions by following our comprehensive advice on using the revised fixed rate method and actual cost method.

If you're looking to optimise your tax deductions and ensure compliance and require personalised assistance, contact us today.

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Contact us today for a tax review

If you're earning a lot of money and are paying a lot of tax as a result, did you know there are ways you can legally reduce your taxable income that don't rely on the Australian government handing out tax cuts? Our tax experts have been assisting high income earners with navigating the Australian tax system for over two decades. With rising living costs, it's important you're informed of all the deductions available to you as a taxpayer.

We prepare tax returns daily and can pick up on things you may have missed, including deductions and relevant eligible rebates, offsets, and credits. As a Registered Tax Agent, we can also negotiate payment plans, extend your tax return lodgement due date from October to May the following year, and ensure you stay compliant with the Australian Taxation Office (ATO).

Taxable income brackets explained

The tax cuts outlined in the 2019 federal budget, set to be implemented on 1 July 2024, will result in a reduction of the 32.5% tax bracket to 30%, while the 37% tax rate will be retained. This means individuals with incomes ranging from $45,000 to $200,000 will have a marginal tax rate of 30%. The tax-free threshold remains at $18,200, allowing individuals to earn up to this amount without paying income tax. Specifically, those earning $100,000 can expect to save $2,179 in taxes, while those with $150,000 incomes will save $3,729 in taxes, and individuals earning $180,000 will experience a $3,729 tax saving instead of the original saving of $6,075.

Stage one tax cuts and the Low and Middle-Income Tax Offset (LMITO)

The first stage of tax cut implemented a short-term and now concluded Low and Middle-Income Tax offset (LMITO) that was applicable to individuals earning between $37,000 and $126,000. At its most generous, the LMITO aimed to decrease taxes by a maximum of $1,500 but concluded in the financial year 2022.

Stage two tax cuts for middle income earners

The second phase of tax cuts, implemented from July 2020, raised the upper limit for the 19% and 32.5% tax brackets. As a result, individuals earning between $37,000 and $45,000, who were previously subject to a marginal rate of 32.5%, now face a 19% marginal rate. Similarly, those with incomes between $90,000 and $120,000 experienced a reduction in their tax rates from 37% to 32.5%.

Next Steps

We've been working with legal professionals for going on three decades and during that time we have helped many barristers establish a strong foundation of tax compliance, bookkeeping, cashflow budgeting, and tax planning.

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