This month we bring to you top three lodgement issues highlighted by ATO for FY2019-20, CGT improvement threshold for FY2020-21.

And summarised below are extensions announced on various COVID relief measures.


ATO’s top 3 lodgment issues for FY2019-20

  • Claiming multiple working from home methods for the same period.
  • Copying and pasting last year’s deductions.
  • Forgetting to include some income. For E.g. Cash Wages, Foreign Income, Cryptocurrency Gains, etc.


CGT improvement threshold for FY2020-21

  • The ATO has increased the CGT improvement threshold from $153,093 in FY2019-20 to $155,849 in FY2020-21.
  • This threshold is relevant for determining if an improvement to a Pre – CGT asset is treated as a separate asset for CGT purpose.


Extension of WFH shortcut rate

  • The ATO has extended the WFH shortcut rate of 80c/hour till 30th September 2020.
  • This was originally meant only for the period from March to June.
  • Taxpayers are advised maintain a record of the number of hours worked from home.


Victorian government announces more business support

  • Eligible businesses with payrolls up to $10 million can defer the payroll tax for the 1st half of FY2020-21.
  • Expanding the business support fund to provide a new $5,000 grant.
  • This grant previously applied only to 12 postcodes linked to outbreaks. It will now apply to all areas under stage three restrictions.


Extension to the Job keeper program

  • The Job keeper subsidy program has been extended till March 2021 at lower rates and with additional eligibility testing for small businesses and sole traders.
  • Under the additional eligibility testing, businesses should demonstrate an actual decline in the revenue against a comparable period rather than forecasts.
  • Refer to the reduced subsidy amount below:
    Fortnightly Period Full Time Part Time
     28th September 2020 to 3rd  January 2021
     4th January 2021 to 28th   March 2021


Extension to the early release of super

  • The early super release of $10,000 has been extended up to 31st December 2020.
  • The timeline for the 2nd application has also been extended from 24th September 2020 to 31st December 2020.


Extension to apprentice & trainees wage subsidy scheme

  • This scheme has been extended up to 31st March 2021. This was originally meant to last only up to 30th September 2020.
  • According to the scheme, 50% of the apprentice or trainee’s wages for 9 months, up to $7,000/quarter will be provided as subsidy to the employers.