Guest post by Officeworks Chief Operating Officer, Michael Howard on how to navigate tax time this year.
Over the past 12 months, working environments all over the world have experienced significant change. As we’ve adapted to the pandemic, working from home (WFH) is no longer a short-term novelty, but becoming a permanent fixture that will carry well beyond COVID-19.
With June 30 fast approaching, now is the time for small and medium business owners (SMBO’s), as well as consumers, to take advantage of the savings opportunities and tax breaks that may not have been available last year. To encourage Australians to look closely at what they can and can’t claim, Officeworks Chief Operating Officer, Michael Howard shared some thoughts on how Australians can navigate tax time and reap the benefits.
Working from home is here to stay
With many Australians enjoying the added benefits of WFH such as work-life balance, new research released by Officeworks, indicates 73 per-cent of Australian workers would like to work from home in some capacity over the next 12 months. This increases to 87 per-cent amongst those workers who have already been working from home over the past year. The research also found 56 per-cent of respondents spent more than $150 on home-office items in the past 12 months with an average spend of $130.
“The findings have revealed a large number of Australians are entitled to additional benefits this tax time as part of setting up their homes to work remotely. Many of the purchases made in early 2020 were temporary solutions, but with working from home and flexible working arrangements now being implemented by many businesses, we have seen customers set up more permanent workstations in their homes,” said Mr Howard.
“We have seen increased sales in technology and home office products such as home printers, monitors, computer accessories, cables and sit-stand desks, products that help our customers work remotely which could be tax deductible.”
The rise in home office ergonomics
According to Safe Work Australia, research has shown sitting in an incorrect or awkward posture can lead to musculoskeletal disorders (MSD), particularly with the neck and lower back. Almost three out of 10 respondents (28 per-cent) of the Officeworks survey said they don’t think they have an ergonomically safe home office setup, however there are a number of relatively small purchases that can make a big difference. Officeworks research revealed that chairs (60 per-cent), keyboards (43 per-cent) and new mice (40 per-cent) were the most popular purchases in this past year.
“With more individuals continuing to work from home, we have seen an uplift in sit-stand desks and ergonomic seating as customers make sure they have a home workspace that accommodates them comfortably,” said Mr Howard.
How you can save this EOFY
Officeworks has revealed two-thirds of Australians (67 per-cent) will be claiming additional items when lodging their tax returns this year. However, concerns are present with 56 per-cent of respondents admitting their knowledge of EOFY and tax returns is minimal and that they might not be making the most of the benefits that are available to them.
Over half of respondents (54 per-cent) said they would have made additional purchases had they known WFH items were tax deductible and 71 per-cent of SMBO’s admitted to finding the tax system for small businesses confusing. It is for this reason that Officeworks encourages people to take a closer look at what items might in fact be tax deductible for themselves, or their business.
“Looking at where to take advantage of tax breaks can be an effective way for small business owners to save money or offset losses. However, many small businesses don’t take advantage of them because they’re unaware of what’s available to them,” said Howard.
“When it comes to EOFY, it is best to speak to a taxation professional to take advantage of all the new changes. For instance, small business owners can find out what their company qualifies for, and regularly monitor compliance.”
