The 80¢ per hour shortcut method, introduced in April 2020 in response to COVID-19, will now be in place until 30 June 2021.
This is the third time the Tax Office has chosen to extend the shortcut method, after it was first due to expire at the end of the last financial year, then September 2020, and more recently, at the end of December 2020.
Conversely, the ATO’s updated Practical Compliance Guideline 2020/3 no longer states whether further consideration will be given to extend the latest end date.
The new extension comes as NSW continues to contain an outbreak of COVID-19 infections that began on the Northern Beaches a week before Christmas.
Victoria has since recorded new community transmission cases, with the state government now moving to push back plans for workers to return to the office from next Monday to a week later.
The temporary shortcut method will continue to be supplementary to the 52¢ fixed-rate method and the actual cost method of calculating running expenses, with taxpayers able to choose the appropriate method for their circumstances.
View the ATO’s updated PCG 2020/3 here.
07 January 2021
The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.