Changes to Deductions this Tax Season

Hello Chasers,

If you are a small business owner who works from home or uses a car for business, there are some changes to deductions you need to know about.

Cents-per-kilometre method

The cents-per-kilometre rate for claiming car expenses has increased from 72 cents to 78 cents per kilometre. This means you can claim more money for the cost of driving your car for business.

Car limit for business owners

The car limit has also increased, from $60,200 to $64,741. This is the maximum value of a car that you can use to calculate the depreciation of your car for business purposes.

Work from home business expenses

The fixed rate method for claiming work from home expenses has increased from 52 cents to 67 cents per hour. This means you can claim more money for the cost of things like electricity, internet, and phone bills when you work from home. You no longer need to have a dedicated home office space to claim the fixed rate method. However, you still need to keep records of your work-related expenses.

If you would like a copy of our home office expense template for substantiating your claims please contact Shannae Hewett on 55612643.

Have a great day!

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