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New tax rules and what to do with your refund
By MyBudget Editor

MyBudget founder and director Tammy Barton talks about some of the new tax rules in 2020 and challenges us to think differently about how—with a recession looming—we use our tax refunds.

Watch the video now or read the transcript below.

Hi everyone, I hope you’re doing well. Now, I know it’s not an exciting topic, but let’s talk about tax.

A lot of people’s deductions are going to be more complicated this year because they’ve been working from home. The sorts of expenses you can claim, include:

  • Electricity
  • Phone and internet
  • Cleaning costs for your work area
  • Computer and office supplies, like paper and ink cartridges
  • As well as home home office equipment. 

If calculating your work-from-home costs sounds complicated, I’ve got some good news. 

The Australian Tax Office has introduced a temporary shortcut method.

With the shortcut method, you can claim a deduction of 80 cents for each hour you worked from home between the 1st of March and 30th of June this year.

There are of course conditions, so make sure you go to the ATO website or talk with a tax agent about your situation.

Now, this leads me to ask… 

What are you planning to do with your tax refund?

A lot of times, people see their refund as a bonus or “fun” money--and there’s certainly nothing wrong with that. But with a recession looming, I want to suggest a different strategy.

This year’s tax refund is an opportunity to create an important safety buffer in your budget. 

The average tax refund is around $2500, which is an amazing boost for anybody’s savings. It could make your safety net that much stronger and build even more flexibility into your budget.

Alternatively, you could use your refund to pay down debt or get ahead in your repayments—again, to save money and gain flexibility.

Combined with a detailed budget plan, that’s how you future-proof your finances.

If you’d like to talk with a money coach, please don’t hesitate to call MyBudget on 1300 300 922 or you can enquire online.

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