Australia: Tax treatment of working-from-home benefits; deductibility of JobKeeper repayments

Australia: Tax treatment of working-from-home benefits

The Australian Taxation Office (ATO) issued guidance relating to certain relief provided in response to the coronavirus (COVID-19) pandemic.

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  • A fact sheet provides information for employers about the tax treatment of working-from-home benefits and outlines fringe benefits tax obligations when employees have been provided a benefit to facilitate their work. The fact sheet covers certain residual, property or expense payment benefits that may be exempt from fringe benefits tax or have their taxable value reduced under the “otherwise deductible” rule. Read the fact sheet: COVID-19 and working from home benefits

  • The ATO issued a release stating that it may allow voluntary repayments of the JobKeeper payment to be tax deductible in “limited circumstances.” The ATO reported that those employers that choose to voluntarily repay an amount in relation to JobKeeper, an income tax deduction may be available if the payment is made to prevent reduction in business or to publicise and promote the business in the short-term. According to the ATO, the JobKeeper payments that the employer received must have been treated as assessable income. Any deduction must be claimed in the same income year in which the repayment was made.

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