Xinja’s Terrific Tax Time Tips

Xinja’s Terrific Tax Time Tips

As we all know, “nothing can be said to be certain, except death and taxes.” Especially true at this time of year. However, to cheer you up – we’ve got some money saving tips if you’ve been working from home a lot in the last few months, plus some important things to note about EOFY and if you have a Stash account .

Before we start – we must remind you that…

The information below is general in nature, does not take into account your personal financial situation, and should not be regarded as specific tax advice (or financial advice) to you. It is strongly recommended that you seek, and only rely upon, independent professional advice. Now….onwards!

Here’s what you may be able to claim

If you’ve been working from home through the COVID 19 lockdown, you may be able to claim a tax deduction for the additional running expenses of your cozy home office. This can include:

  • Electricity expenses associated with heating, cooling and lighting
  • Running items you are using for work
  • Phone and internet expenses
  • Computer consumables (for example, printer paper and ink) and stationery
  • Home office equipment, including computers, printers, phones, furniture and furnishings.

All too hard? There’s a shortcut!

The ATO (Australian Tax Office) realises that tracking all these expenses can be challenging (to say the least) and the COVID 19 lockdown makes this a special case, so they’ve announced that they will accept a temporary simplified method – or shortcut method – of calculating additional running expenses! So far this is only for the period starting 1 March 2020 until 30 June 2020, although they may extend this. More information about this new method can be found here.  

Moving money before EOFY

It is important to note that if you’re planning to move money out of your transaction account or Stash account (for example into your Super) and you need these funds to clear before the end of June 30 2020 (financial year cut off) that our daily outward transfer limit via the app is $20k and it might take up to 2 business days for the funds to arrive.

Tax Time at Xinja

There are a couple important things that will happen around the end of June and early July, which can affect your tax return, as outlined below: 

Interest earned and the ATO
As a bank, we are legally obliged to report the interest you’ve earned on your Stash account to the ATO. Xinja will aim to lodge this information with the ATO before the end of July 2020.

If you provided us with your TFN or tax exemption reason when you signed up for a Stash account, we will not have withheld any tax. If you didn’t, we will have withheld tax at the highest rate.

For more information on these topics see these FAQs::

Why are you asking questions about my tax situation?

I’m a tax resident of Australia, do I need to provide my Tax File Number (TFN)?

Statements
Statements are made available via the app every 6 months – for the end of June and the end of December. Tap on ‘Statements’ and you can view, download or forward them as PDFs via email or other channels. The June statements will appear in your Xinja app shortly after July 1.

For more information on statements see these FAQs: 

How do I get a full year statement for my tax return?

When do I get my statements?

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