COVID-19 measures and support
Specific measures and support are available for individuals impacted by COVID-19 including:
- advice on the tax treatment of employment payments made because of COVID-19 (for example, if you take leave, are stood down or lose your job)
- advice on the tax treatment of Australian Government payments made because of COVID-19 (for example, if you were unable to earn income because state or territory health orders prevented you from working in your usual work)
- an optional simplified method (that ends on 30 June 2022) to claim 80 cents for each hour you work from home to cover all deductible running expenses
- advice on the deductibility of costs incurred for a COVID-19 test
- advice on the tax treatment of residential rental property income and expenses.
- COVID-19 – general information
Low and middle income tax offset
The low and middle income tax offset (LMITO) has increased by $420 for 2021–22. This will increase the base amount to $675 and the maximum amount to $1,500.
The LMITO will not be available after 2021–22.
Granny flat arrangements and CGT
From 1 July 2021, no capital gains tax (CGT) event arises for eligible individuals when certain granny flat arrangements are created, varied or terminated. A granny flat arrangement is a written agreement that gives an eligible person the right to occupy a property for life. The CGT exemption only applies if all of the following apply:
- the owner or owners of the property are individuals
- one or more eligible people have an eligible granny flat interest in the property
- the owners and the people with the granny flat interest enter into a written and binding granny flat arrangement. This arrangement must not be commercial in nature.
Normal CGT rules apply if there is no granny flat arrangement or if you are doing something other than creating, varying or terminating a granny flat arrangement.
See alsoA list of new initiatives incorporated in this year's Individual tax return instructions.