The national rental affordability scheme (NRAS) started on 1 July 2008, encouraging large-scale investment in affordable housing. It offers tax and cash incentives to providers of new dwellings for 10 years, granted they are rented to low and moderate income households at 20% below market rates.
Though the NRAS is no longer taking new investments, property owners within the scheme will soon be receiving letters from the ATO to remind them of their claim requirements.
The two key elements of the NRAS are;
An Australian Government contribution in the form of a refundable tax offset or direct payment to the value of $8,394.10 per dwelling per year in 2018-19. The Australian Government contribution is 75% of the total annual incentive.
A state or territory contribution in the form of direct financial support or an in-kind contribution to the value of at least $2,798.03 per dwelling per year in 2018-19. The state or territory contribution is 25% of the total annual incentive.
Owners of NRAS rental property are eligible to claim a refundable tax offset if:
The Approved Participant has provided them with advice of their entitlement based on the certificate received from the Housing Secretary, and;
The claim is made in the year to which the certificate relates.
Deductions can be claimed for expenses incurred with a NRAS rental property, excluding the contribution amount received from the state or territory. The contribution amount is non-assessable, non-exempt (NANE) income for tax purposes.
Ensure you’re up to date on how to claim your working-from-home expenses!
As the business landscape shifts back and forth between office, hybrid and home-based work opportunities, it’s important to remember what methods are available to you when it comes to claiming. If part of your role allows you to work from home, you may be able to claim certain expenses on your tax return this year using one of the following methods.
The Revised Fixed Rate Method:
Under the revised fixed rate method, individuals can claim 67 cents per hour worked from home during the relevant income year. This rate includes additional running expenses, such as home and mobile internet or data, phone usage, and electricity and gas for heating, cooling, and lighting. Importantly, using this method, you cannot claim separate deductions for these expenses.
To use this method, taxpayers must maintain records of the total number of hours worked from home and the expenses incurred while working at home. Additionally, they must keep records of expenses not covered by the fixed rate per work hour, demonstrating the work-related portion of those expenses.
What Records Do You Need?
Previously, taxpayers required a dedicated workspace at home. From 1st March 2023 onwards, the record-keeping requirement has shifted again, necessitating the recording of all hours worked from home as they occur.
How Does The Fixed Rate Method Work?
To utilise the revised fixed rate method:
Additional running expenses are incurred due to working from home.
Keep records of total work-from-home hours and incurred expenses.
Maintain records for expenses not covered by the fixed rate.
The Actual Cost Method:
Alternatively, taxpayers can opt for the actual cost method, where deductions are calculated based on actual additional expenses incurred while working from home. This includes expenses for depreciating assets, energy expenses, phone and internet, stationery, computer consumables, and cleaning dedicated home offices.
What Records Do You Need?
To claim work-from-home expenses using actual costs, you must maintain records showing:
The actual hours worked from home during the entire income year or a continuous 4-week period represents your usual working pattern at home.
Additional running expenses incurred while working from home.
How you calculated the deduction amount.
How Does The Actual Cost Method Work?
To claim actual expenses:
Incur additional running expenses due to working from home.
Keep records showing expenses incurred and the work-related portion of those expenses.
Australians need to understand their entitlements and tax deductions while working remotely.
Consulting with a tax advisor can provide valuable insights into available concessions, deductions, and offsets for your tax return.
By staying informed and adhering to ATO guidelines, taxpayers can ensure compliance and make the most of available deductions in the evolving landscape of remote work. Why not start a conversation with us today?