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ATO changes 'working from home' deductions

THE Australian Taxation Office (ATO) has refreshed the way that taxpayers claim deductions for costs incurred when working from home. According to the ATO, the changes better reflect contemporary working from home arrangements.

Assistant Commissioner Tim Loh said taxpayers can now choose one of two methods to claim working from home deductions: either the “actual cost” or “fixed rate” method. "Only the fixed rate method is changing," Mr Loh said.

The revised fixed rate method applies from July 1, 2022 and can be used when taxpayers are working out deductions for their 2022-23 income tax returns.

"First things first, make sure you are eligible to claim working from home expenses," Mr Loh said. "To claim your working from home expenses, you must be working from home to fulfil your employment duties, not just carrying out minimal tasks, such as occasionally checking emails or taking calls. Also, you must incur additional expenses as a result of working from home.

"No matter which method you use, make sure to keep records. This will give you more flexibility to choose the method that gives you the best deduction at tax time depending on your circumstances."

Mr Loh said these changes would provide benefits for those using the revised fixed rate in 2022-23.

"Items that are difficult and tedious for everyday Aussies to calculate actual work-use, like phone, internet and electricity expenses, are included in the revised rate," he said. "Assets and equipment that typically give taxpayers a bigger deduction, such as technological items and office furniture, are not included in the revised rate and need to be claimed separately.

"Another benefit is that you no longer need a dedicated home office to use the fixed rate method."

Mr Loh reassured taxpayers who have not kept records so far this income year that transitional arrangements are in place for 2022-23.

"From 1 July 2022 to 28 February 2023, we’ll accept a record which represents the total number of hours worked from home -- for example a four-week diary. From 1 March 2023 onwards, taxpayers will need to record the total number of hours they work from home.

"And remember, you can’t claim for things like coffee, tea, milk and other general household items, even if your employer may provide these kinds of things for you at work."

Revised fixed rate method

The revised fixed rate method can be used from the 2022-23 income year onwards. The changes are:

Rate

  • The cents per work hour has increased from 52 cents to 67 cents.

What’s covered by the rate

  • The revised fixed rate of 67 cents per work hour covers energy expenses (electricity and gas), phone usage (mobile and home), internet, stationery, and computer consumables. No additional deduction for any expenses covered by the rate can be claimed if you use this method.

What can be claimed separately

  • The decline in value of assets used while working from home, such as computers and office furniture.
  • The repairs and maintenance of these assets.
  • The costs associated with cleaning a dedicated home office.

Home office

  • The revised fixed rate method doesn’t require taxpayers to have a dedicated home office space to claim working from home expenses.

Record keeping

  • Taxpayers need to keep a record of all the hours worked from home for the entire income year – the ATO will not accept estimates, or a fpur-week representative diary or similar document under this method from March 1, 2023.
  • Records of hours worked from home can be in any form provided they are kept as they occur, for example, timesheets, rosters, logs of time spent accessing employer or business systems, or a diary for the full year.
  • Records must be kept for each expense taxpayers have incurred which is covered by the fixed rate per hour. For example, if taxpayers use their phone and electricity when working from home, they must keep one bill for each of these expenses.

Actual cost method

The actual cost method has not changed. Taxpayers can claim the actual work-related portion of all running expenses.

This includes keeping detailed records for all the working from home expenses being claimed, including:

  • all receipts, bills and other similar documents to show taxpayers have incurred the expenses, a record of the number of hours worked from home during the income year (either the actual hours or a diary or similar document kept for a representative 4-week period to show the usual pattern of working at home).
  • a record of how taxpayers have calculated the work-related and private portion of their expenses (for example, a diary or similar document kept for a representative four-week period to show the usual pattern of work-related use of a depreciating asset such as a laptop).

The ATO wants to remind taxpayers that if they are claiming their actual working from home expenses, they cannot claim a deduction for expenses which have already been reimbursed by their employer.

More information

No matter which method is used, if taxpayers purchase assets and equipment for work and it costs more than $300, they cannot claim the full amount immediately. For each of these items, the deduction must be claimed over a number of years and the work portion claimed, known as decline in value or depreciation.

The ATO has online calculators to help taxpayers work out the decline in value of assets and equipment purchased. There is also the myDeductions tool in the ATO app, which can help keep track of expenses.

Taxpayers needing assistance or advice about claiming working from home expenses can also seek the assistance of a registered tax professional.

More information about working from home, including example calculations, is available at ato.gov.au/home

 

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Review supports passage of Referendum legislation

THE Parliament’s Electoral Matters Committee has recommended that the Referendum (Machinery Provisions) Amendment Bill 2022 be passed, if amendments are made to strengthen enfranchisement and participation in the referendum, particularly of Aboriginal and Torres Strait Islanders, and clear, factual and impartial information is made accessible to all voters.

Tabling the report last week, Committee Chair Kate Thwaites MP said the inquiry and the legislation were focused on technical aspects of conducting a referendum.

"Above all, the legislation intends to modernise the referendum process and bring it into line with how recent federal elections have been conducted," Ms Thwaites said.

The committee recommended that the legislation be passed, but also that:

  • The Government consider any amendments to support increased enrolment and participation in the referendum, particularly of Aboriginal and Torres Strait Islander people, including in remote communities.
  • The Government consider any amendments which ensure ​
    • clear, factual and impartial information is made accessible to all voters as part of the referendum process; and
    • clear, factual and impartial information is provided in appropriate formats for Aboriginal and Torres Strait Islander voters, and people from culturally and linguistically diverse backgrounds.

Read the full report link.

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Committee to hold first public hearing into the implications of severe weather events on the nation’s road network

THE House of Representatives Standing Committee on Regional Development, Infrastructure and Transport is commencing public hearings for the inquiry into the implications of severe weather events on the national regional, rural, and remote road network.

Exploring planning, engineering, and construction standards to strengthen road resiliency across Australia was the focus of the opening public hearing on February 16, 2023, with Austroads, the member association of Australian and New Zealand transport agencies.

Chair of the Committee, Luke Gosling OAM, MP, said, "The hearing is an opportunity to hear from Austroads about the effects of climate change and natural disasters on the national road network, and the role of the Austroads Guides in promoting a national approach to best practice road design to enhance infrastructure resiliency and support our communities and industries."

The committee intends to hold further public hearings and interested parties are encouraged to make a written submission to this inquiry relating to any or all of the inquiry terms of reference by February 28, 2023.

Further information about the inquiry, including published submissions and hearing transcripts, will be available on the inquiry web page.

 

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Long COVID inquiry to speak with peak bodies, medical researchers and ventilation experts

A PUBLIC HEARING will be held on Monday, February 20, at Cabrini Hospital in Malvern, Melbourne, as part of the House Health Committee’s inquiry into long COVID and repeated COVID infections.

Professor Brendan Crabb AC, the Burnet Institute’s director and chief executive, will appear to further unpack what medical researchers know so far about long COVID and repeated COVID infections.

The public hearing will also hear from peak bodies, other medical researchers and ventilation experts about the effects of long COVID and repeated COVID infections on patients, health workers and schools.

Chair of the Committee, Mike Freelander MP said, "The committee is looking forward to travelling to Melbourne to hear from organisations and researchers who have played central roles throughout the COVID pandemic.

"The committee is interested in hearing about how we may be able to reduce the risk of COVID in highly social settings such as schools, including by investigating the role of ventilation," Dr Freelander said. "We are also looking forward to speaking to peak bodies to better understand how long COVID and repeated COVID infections are impacting Australia’s primary care capability."

Deputy Chair of the Committee, Melissa McIntosh MP said, "COVID is serious, and the committee is asking for expert evidence on preventative measures and issues with multiple reinfection.

"Throughout our inquiry we have repeatedly heard about the importance of preventative strategies such as mask wearing, social distancing and ventilation. We intend to canvass these measures in more detail at this public hearing."

Further information about the inquiry, including the terms of reference and published submissions are available on the Committee’s website.

Public hearing details

Date: Monday, 20 February 2023Time: 8.30am–5pm AEDTLocation: Cabrini Hospital Education and Training facility, 154 Wattle Road, Malvern, Victoria

Program

8.30am–9.10am: Professor Brendan Crabb AC, Director and CEO, Burnet Institute9.10am–9.50am: Public Health Association of Australia (PHAA)9.50am–10.30am: Royal Australian College of General Practitioners (RACGP)10.30am–11am: Break11am–11.40am: Associate Professor Robyn Schofield, University of Melbourne11.40am–12:20pm: Professor Lidia Morawska, Queensland University of Technology (by videoconference)12.20pm–1.20pm: Break1.20pm–2pm: Professor Geoff Hanmer, Director, OzSAGE2pm–2.40pm: Professor Jeremy Nicholson, Director, Australian Phenome Centre2.40pm–3.40pm: Break3.40pm–4.20pm: COVID Safe Schools Inc (by videoconference)4.20pm–5pm: Australian Education Union5pm: Close

Audio of the hearing will be broadcast live at aph.gov.au/live.

 

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Advanced manufacturing – Govt looks at how innovation will drive Australia’s future

THE House Standing Committee on Industry, Science and Resources has launched an inquiry into advanced manufacturing, with the aim of further supporting Australian industry, creating jobs and reviving the country's ability to make world class products in Australia.

Committee Chair Rob Mitchell MP said understanding opportunities associated with advanced manufacturing was crucial for strategic growth.

"Supporting the growth of advanced manufacturing is about enhancing the things we do well by taking advantage of new and improved processes," Mr Mitchell said.

"We need to ensure that we are well-positioned as a nation to take advantage of new technologies, and that our strategic decisions are informed by the right data. Continuing to grow the relationship between industry and our research sector is also vital.

We want to hear from stakeholders across industry, our tertiary sector and government about what it will take to make things better – and how we can ensure reliable growth within Australia’s manufacturing sector."

Submissions for the Inquiry into Developing Advanced Manufacturing in Australia are now open. The inquiry Terms of Reference can be found at aph.gov.au/isr.

 

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2023 Australian Government Budget needed to back apprentice recruitment says ITECA

THIS YEAR'S Federal Budget must make meaningful and long-term commitments to fund apprentice and trainee recruitment, retention and support initiatives.  That’s the advice from the Independent Tertiary Education Council Australia (ITECA), the peak body representing independent providers in the skills training, higher education, and international education sectors.

“A decade ago, the then Australian Government slashed apprentice and trainee incentives directed to both commencement and completion in critical skill areas for the economy," ITECA chief executive Troy Williams said. "This saw recruitment levels crash by around 59 percent by 2019 on 2012 levels, despite efforts of some states and territories.

"This decline was only arrested with the introduction of Covid-era employment subsidies,” Mr Williams said..

With apprenticeship and traineeship numbers having grown in recent years, ITECA is calling for the Australian Government to commit to long-term incentives to ensure that employers are able to keep apprentices and trainees on throughout the course of their training.

“The duration of an apprenticeship is often four years from commencement to completion.  Government incentives that last for a year or two do not provide potential apprentices, trainees, employers or training organisations with the confidence to engage meaningfully and long-term in the ways needed,” Mr Williams said.

Consistent with ITECA’s established reputation for member-driven policy leadership, the independent skills training sector has provided recommendations to the Australian Government as part of the consultations to support the development of this year’s federal budget.

“ITECA members have advised the Australian Government that a subsidy of 30 percent be provided in the first year of apprenticeships and traineeships, without limitation by any list.  Further, ITECA members have also advised that the completion incentives be reinstated at a minimum of $5,000 to the apprentice or trainee on the completion of their training,” Mr Williams said.

The emphasis on the completion incentive is a critical component of the support mechanism, according to the ITECA membership.

“Without the completion incentive, the initial incentives are a disservice to employers in the first instance, as well as to the apprentices and trainee.  We need the Australian Government to support apprentices, trainees and employers for the duration of their training,” Mr Williams said.

To provide employers and the skills training sector with confidence, ITECA members recommend that the new arrangements be implemented over the medium-term.

“As they consider taking on an apprentice and trainee, employers need confidence that the policy settings of today will provide, as a minimum, the support available over the term of the apprenticeship and traineeship,” Mr Williams said.

Government data referenced in the ITECA State Of The Sector Report shows that over the past four years, the number of apprentices and trainees with independent Registered Training Organisations (RTOs) has grown by more than 60,000.  The report shows that there were 182,220 apprentices and trainees with independent providers, that’s 52.2 percent of all apprentices and trainees in the skills system.

www.iteca.edu.au

 

About the ITECA

Founded in 1992, the Independent Tertiary Education Council Australia (ITECA) is the peak body representing independent Registered Training Organisations (RTOs) and higher education providers.  Independent RTOs support more than 87 percent of the 4.3 million students in skills training and around 10 percent of the 1.6 million students in a higher education awards program.

 

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PJCIS supports relisting of four terrorist organisations under the Criminal Code

THE  Parliamentary Joint Committee on Intelligence and Security (PJCIS) has tabled its report by statement on the Review of the 2022 relisting of four organisations as terrorist organisations under the Criminal Code.

The relistings cover Al-Qa'ida in the Arabian Peninsula (AQAP), Al-Qa’ida in the Indian Subcontinent (AQIS), Islamic State in Libya (IS-Libya) and Islamic State Sinai Province (IS-Sinai).

The four organisations have all been listed as terrorist organisations under the Criminal Code since 2016 or earlier. The listing of the organisations, made by regulations tabled in Parliament, triggers the application of a number of offences under the Criminal Code relating to membership of, support for or association with the organisations.

The committee said all four organisations sought to revive or re-establish a caliphate within the territories they operate in and seek to do so through a militant jihadist ideology and fomentation of sectarian violence. All four organisations have expressed sentiments against Australian allies and interests, the committee said.

According to the committee, AQAP is a Yemen-based religiously motivated violent extremist group which, since its establishment in 2009, has undertaken numerous terrorist and criminal activities. A recognised affiliate of al-Qa’ida, AQAP has undertaken, attempted to conduct attacks and advocated for the undertaking of terrorist attacks within Yemen and internationally, including praising attacks against Australia’s allies.

Based primarily in Pakistan, AQIS is an al-Qa’ida-affiliated religiously motivated violent extremist organisation, which seeks to advance al-Qa’ida’s objectives in South Asia. AQIS currently recruits from Muslim communities across South Asia, with its leadership based in Afghanistan and Pakistan.

As an officially recognised affiliate of Islamic State, IS-Libya is a religiously motivated violent extremist organisation that has undertaken terrorist attacks and kidnappings against police and military personnel in North Africa, resulting in multiple deaths. Since its re-listing in 2019, IS Libya has undertaken multiple attacks including bombing of a police checkpoint and attacks on Libyan National Army soldiers. 

Based on Egypt’s Sinai Peninsula, IS-Sinai is a religiously motivated violent extremist group located in Egypt’s Sinai Peninsula and is officially recognised by Islamic State of Iraq and the Levant (ISIL). Since its last re-listing in 2019, IS-Sinai has undertaken multiple attacks including against the Egyptian government, detonation of a gas pipeline and killing civilians and Egyptian soldiers through use of explosive devices.

Chair of the committee, Peter Khalil MP, said, "Based on information provided, it is the view of the committee that the appropriate processes have been followed and that the four organisations meet the threshold for re-listing as terrorist organisations under the Criminal Code."

Further information on the review can be obtained from the Committee’s website.

 

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House Economics Committee keeps spotlight on RBA

THE House of Representatives Standing Committee on Economics will hold a public hearing with the Governor of the Reserve Bank of Australia (RBA), Philip Lowe, and other senior RBA officials on Friday, February 17, 2023.

Committee Chair, Daniel Mulino MP, said, "Since the committee’s last public hearing in September last year, the RBA has raised the cash rate one percent — a cumulative rise of 3.25 percent since the RBA started hiking rates in May 2022. Right now, inflation is the primary challenge to Australia’s economy, with the latest CPI inflation figures reaching 7.8 percent over the year to the December quarter.

"This sharp increase in rates, unprecedented in recent times, has been creating pressure across households and the economy. While the RBA’s view is that inflation is likely to have peaked around the end of 2022, there is still considerable uncertainty in the economic outlook with further interest rate increases expected in the months ahead," Dr Mulino said.

"The committee takes its scrutiny of the RBA very seriously and will continue to examine how the challenges of tackling high inflation are evolving. The RBA’s mandate of returning inflation to the 2 to 3 percent range over time is vital, and there are many domestic and global factors that will need to be addressed."

Public hearing details

Date: Friday 17 February 2023Time: 9.30am – 12.30pmLocation: Committee Room 2R1, Parliament House, Canberra

The hearing will be broadcast live at aph.gov.au/live.

 

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Parliamentary Committee looks at building a resilient and dynamic economy

BUILDING a stronger and more resilient economy is the focus of the House of Representatives Standing Committee on Economics’ new inquiry into promoting economic dynamism, competition and business formation.

The inquiry will examine how encouraging healthy competition, stimulating the creation of more businesses and fostering entrepreneurship can enhance the well-being of Australians.

Committee chair Daniel Mulino MP said there had been two significant inquiries into competition over the past few decades – the 1993 Hilmer report and the 2015 Harper review.

"The committee does not plan to go over old ground," Dr Mulino said. "The economy has changed significantly over the past decade or so, particularly in digital technology and disruptive new technologies. We need to ensure we are harnessing this technology in the best way in the interests of consumers."

Dr Mulino said that while new digital technologies and approaches could be a very effective way to increase competitive tension, they could also create regulatory challenges.

"The committee will also investigate the continued market power of the Big Four banks, especially in the area of mortgages, retail deposits, and loans to small and medium enterprises, and whether more can be done to encourage competition through changes to macroprudential arrangements or other measures.

"In recent decades Australia’s productivity growth has stalled. The committee will examine the extent of market concentration, the fall in the establishment of new enterprises, the increase in mark-ups, and reduction in job mobility—and whether these have contributed to a decline in economic dynamism," Dr Mulino said.

The pandemic and the war in Ukraine had challenged supply chains and a diverse and dynamic business environment was one answer to that problem, he said.  

"It is also timely that as a committee we explore economic plans that better equip Australia in the face of global uncertainty. As the nation emerges from the pandemic it is critical that we renew our focus on competition and business dynamism, to boost our productivity and for the benefit of all Australian workers and consumers."

Dr Mulino said the committee "would scrutinise the extent to which the consolidation of market power had undermined productivity, stifled wages, created more fragile markets and led to higher mark-ups".

The committee will also examine:

  • the degree to which anti-competitive behaviour and economic barriers — regulatory, as well as restrictions on access to finance, infrastructure, suppliers, customers, and workers — contribute to rising market concentration, and
  • international examples of best practice and innovative policies that demonstrate how Australia could lower economic barriers to competition and business formation, further limit anti-competitive behaviour, and better manage changes in industry structure that affect market power.

The committee is seeking submissions addressing some or all of the inquiry terms of reference from interested groups and individuals by Friday March 31, 2023. Submissions can be made online via www.aph.gov.au/economicdynamism.

More details about the inquiry, including the full terms of reference, are available on the committee’s website.

 

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Health Committee to hear from long COVID patients and hold roundtable with experts

THE House Standing Committee on Health, Aged Care and Sport will hear from Australians living with long COVID and other post-viral illness at a public hearing on February 17, 2023 at Parliament House in Canberra.

The Chair of the Committee, Mike Freelander MP, said, "Listening to Australians living with long COVID about their experiences, journey to diagnosis and treatment is a key role of this inquiry.

"The committee appreciates the time taken by many people with long COVID who wrote to us to share how the condition has deeply impacted many aspects of their lives. Our next public hearing will unpack some of the issues raised in these submissions in more detail  so we can consider how to better support long COVID patients now and in the future."

The committee will also hear from the Australian Department of Health and Aged Care, the National Aboriginal Community Controlled Organisation (NACCHO) and a roundtable of experts jointly organised by the Australian Academy of Science and the Australian Academy of Health and Medical Sciences.

Deputy Chair of the Committee, Melissa McIntosh MP, said, "The roundtable convened by the Australian Academy of Science and the Australian Academy of Health and Medical Sciences will bring together experts in areas such as infectious diseases, epidemiology, immunology, mental health and public health. This is a great opportunity for the Committee to hear from individuals at the forefront of COVID research and treatment."

The committee will hear from the Department of Health and Aged Care about what the Government is doing to respond to the new challenges for Australia’s healthcare system presented by long COVID and repeated COVID infections and is also looking forward to hearing from NACCHO with its valuable insights into the primary care response to COVID-19 in Aboriginal and Torres Strait Islander communities.

Further information about the inquiry, including the terms of reference and published submissions are available on the Committee’s website.

Public hearing details

Date: Friday, 17 February 2023Time: 8am – 5pm AEDTLocation: Committee Room 1R3 (until 12.10pm) and 2R1 (from 1.00pm), Parliament House, Canberra

Program:

8am–8.30am: National Aboriginal Community Controlled Health Organisation (NACCHO)8.30am–9.20am: Department of Health and Aged Care9.20am–9.50am: Mr Bruce Sedgwick and Ms Sophie Sedgwick, private capacity9.50am–10.20am: Associate Professor Nada Hamad, person with lived experience of long COVID (by videoconference)10.20am–10.50am: Break10.50am–11.30am: Australian Long COVID Community Facebook Group11.30am–12.10pm: Session on lived experience of myalgic encephalomyelitis/chronic fatigue syndrome (ME/CFS) (by videoconference)12.10pm–1pm: Break1pm–5.00pm: Roundtable with experts organised jointly by the Australian Academy of Science and the Australian Academy of Health and Medical Sciences5pm: Public hearing close

The public hearing will be broadcast live at aph.gov.au/live.

 

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Big four banks to face annual parliamentary scrutiny

SCRUTINY of Australia’s four major banks -- Commonwealth Bank, ANZ, National Australia Bank and Westpac -- will continue, with the House Standing Committee on Economics to hold public hearings at least annually with bank executives.

Daniel Mulino MP, the chair of the committee, said given the banks’ key role in the functioning of the economy, ongoing scrutiny was vital.

"The Financial Services (Hayne) Royal Commission, which reported in 2019, showed that far too often the banks did not live up to the trust that Australians placed in them," Dr Mulino said.

The committee will consider a number of consumer protection issues, including:

  • The financial position of borrowers and areas of potential vulnerability
  • Interest rates paid on deposits and loans
  • Ongoing implementation of recommendations from the Financial Services Royal Commission, and
  • Actions to protect customers from scams.

Other matters that will be raised include:

  • Supporting the flow of credit, including to small businesses
  • Operational performance, and
  • Responses to climate change and supporting Australia’s progress towards climate and other sustainability goals.

"And when it comes to scams, with evidence showing that Australians lost more than $2 billion to scams in 2021, a record amount, we need to hear what extra consumer protection the banks are planning," Dr Mulino said.

Dr Mulino said the government continued to work on implementing the recommendations of the Hayne Royal Commission and that the committee was keen to hear from the banks on their responses.

The banks will also face scrutiny by a parallel inquiry into competition to be held by the Economics Standing Committee. The inquiry into promoting economic dynamism, competition, and business formation will examine how healthy competition can enhance the wellbeing of Australians.

The terms of reference for the hearings into the Big Four banks are available on the committee’s website. Information about public hearings will be made available in due course.

The committee will not be seeking or accepting submissions for this inquiry.

 

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