New Financial Year

We are now into week three of a new financial year, and no doubt some of you have already lodged your tax returns or are in the process of…particularly if you are expecting a refund.

The start of a new tax year often brings some changes…this year there are some particularly significant changes that have taken place, summarised below.

Superannuation:

  • Second Round of early access: from 1 July 2020 until 24 September 2020 you can apply for a further $10,000, if affected financially by COVID-19 – it is recommended you seek advice prior to any early withdrawal.
  • From July 1, 2020 the age limit for spouse contributions was raised from 69 to 74; meaning that people 70 or older will be able to receive contributions from their spouse, provided they meet the work test from age 67.

Covid-19 Stimulus:

  • The second round of the $750 coronavirus stimulus will hit bank accounts of around 5-million eligible Australians from July 13. If you receive a government benefit, you will most likely receive this payment into your account.

Tax Deductions:

  • If you have been working from home between 1 March and 30 June 2020, you may be eligible to claim your working-from-home expenses. You can claim 80 cents from each hour worked from over this period, providing you are working from home to fulfil employment duties, and you have incurred additional running expenses.

Data Sharing:

  • From July 1, 2020, you can direct your bank to share data from your credit and debit cards, deposit and transaction accounts with accredited service providers; this will be extended in November to include mortgage and personal loan data. This should make it easier for consumers to find new financial products and switch.

Minimum Wage:

  • The new minimum wage will be $753.80 a week or $19.84 an hour, up $13 from $740.80 a week ($19.49 an hour).