Adopting a multi-factor authentication (MFA) strategy
With technology advancing, it has become easier for hackers to gain access to our personal data.
In the past, passwords were considered the best line of defence against cybercriminals, but times have changed.
That’s why adding an extra layer of security to your online accounts is essential, not just for your information, but for your customer information too.
That’s where multi-factor authentication (MFA) comes in.
MFA is a security measure that combines two or more ways to prove your identity to allow access to an account. By doing this, it makes it much harder for cybercriminals to steal or compromise your credentials. MFA types include:
something you know such as a password, PIN or response to a challenge like naming the first street you lived in
something you have such as a physical token, smart card or an SMS sent to your phone containing a code
Something you are for example a fingerprint, facial recognition or iris scan.
Cybercriminals may still get their hands on your password, but they will need your biometrics or a code to fully unlock your account. While MFA is not available for every online account, it’s becoming a more widely-applied way to verify your identity. Banks, social media platforms and software providers are adopting this measure to protect their users’ information.
Enabling MFA on your email accounts and computer software, especially if working remotely, is crucial. Adopting this practice in a work capacity strengthens the protection of your systems and sensitive information.
Implementing this strategy, alongside the other cybersecurity best practices, gives your systems a greater line of defence in the event of a cyber incident. By taking proactive steps to secure your online accounts, you can help safeguard your personal information and that of your customers. So, take the time to set up MFA on your accounts and enjoy the peace of mind that comes with knowing your information is secure or visit the ACSC website to find out more about implementing your MFA strategy.
Calculation and record-keeping requirements of your working from home (WFH) deductions may have changed for the 2022-23 income year.
The 80c per hour temporary shortcut method ended on 30 June 2022.
For the 2022-23 income year you may be able to use either the revised fixed rate method or the actual cost method to determine your working from home deductions.
Whilst the actual cost method remains unchanged, the fixed rate method has increased from 52c per hour to 67c per hour. The revised fixed rate method incorporates the following usage expenses:
electricity
gas
stationery
computer consumables, such as printer ink
internet
phone.
It is not possible to claim an additional deduction for expenses that are already covered by the revised fixed rate method. However, you may be eligible to claim a separate deduction for the depreciation of assets, including items like laptops, mobile phones, and office furniture.
To claim your working from home deductions using the revised fixed rate method, you must be able to provide both:
A representative record of the total number of hours worked from home during the period from 1 July 2022 to 28 February 2023.
A record of the total number of actual hours worked from home for the period 1 March 2023 to 30 June 2023.
If you choose not to use the fixed rate method, you may be able to use the actual cost method. Please contact your Allan Hall Accountant to assist you in getting the best tax deduction for your personal circumstances.
Regardless of the method you choose, it is important to maintain accurate and complete records for at least 5 years to support your claims for home-based business expenses.
Pandemic Leave Disaster Payments will be extended indefinitely
The Prime Minister has confirmed that pandemic leave payments will be extended indefinitely following this week’s National Cabinet meeting.
That’s the payment to COVID-struck workers who don’t have access to sick leave and are forced to stay home under mandatory isolation periods.
The scheme was to be turned off at the end of September 2022, despite the 5-day isolation requirement remaining in place. Sick people, “whether from COVID or from other health issues”, should stay home — and there’s a responsibility for the government to cover them financially for the appropriate period which is designated,” the Prime Minister said.
Federal and states/territories are splitting the bill. At the next meeting, the National Cabinet will look at shortening the isolation period, with the Prime Minister noting other nations are “gradually moving towards COVID being treated like other health issues.”
This method is temporary and can only be used to work out your deduction for work from home expenses:
between 1 March to 30 June 2020 in the 2019–20 income year
for the 2020–21 and 2021–22 income years.
The shortcut method ends on 30 June 2022. To continue to claim deductions for working from home expenses after 30 June 2022 you will need to use either the:
You will need to meet the eligibility and record-keeping requirements for the method you choose to use.
Eligibility
You can use this method if you:
worked from home and incurred some additional running expenses as a result
have a record of the number of hours you worked from home.
How it works
The temporary shortcut method simplifies how you calculate your deduction for working from home expenses.
Using this method, you:
can claim 80 cents per hour for each hour you work from home
can’t claim any other expenses for working from home, even if you bought new equipment.
The shortcut method covers all your working from home expenses, such as:
phone expenses
internet expenses
the decline in value of equipment and furniture
electricity and gas for heating, cooling and lighting.
The shortcut method includes decline in value of all items. If you choose to use this method there is no requirement to separately calculate the decline in value of equipment or depreciating assets or any other working from home expense.
However, as you may need to use a different method to work out your working from home deduction in later years it’s important to keep the:
receipts for depreciating assets or equipment you use when working from home
records of how you calculated your work-related use of the asset
your decline in value calculations.
Record keeping for the shortcut method
You must have a record of the hours you worked from home, for example, a timesheet, roster or diary.
Once you calculate your deduction, enter the amount at ‘Other work-related expenses‘ in your tax return. Include in the description ‘COVID-19 hourly rate’.
Key Employment Options for the Latest NSW COVID-19 Restriction Period
Given the ongoing nature of this latest COVID 19 outbreak, the government has imposed further restrictions from 18 July 2021 which will impact businesses in the Greater Sydney area, including the Central Coast, Blue Mountains, Wollongong and Shellharbour.
For a detailed rundown of how the recent COVID-19 restrictions impact employees and employers, including whether your employees are allowed to come to work and which businesses are allowed to remain open, please click here.
What are your options as an employer during this lockdown period?
There may be workplace options available such as:
Allowing employees to continue to work from home
Standing down employees unable to work with no pay
Changing rosters and hours of work
Changing employees’ duties
Allowing employees to continue to work from home
This is the ideal option if your business can successfully continue with remote working. Employers must allow an employee to work from home if the employee is reasonably able to do so. Businesses that do not allow employees that can reasonably work from home to do so face a fine of up to $10,000.
Stand downs
Under the Fair Work Act 2009, employers have the option of standing down employees without pay during a sudden workplace closure that is outside the employer’s control. This is allowed when:
the employee is not able to be usefully employed;
there is a stoppage of work; and
the stoppage must have been caused by reasons that the employer cannot reasonably be held responsible for.
If employees are unable to attend work due to an enforceable government direction (eg closure of construction or retail), the employer doesn’t have to pay the employee. Please note however, that an employer and employee can agree on the employee taking paid leave during the stand down period (e.g. annual leave/long service leave).
Changing rosters and hours of work or changing employees’ duties
These options can only be done by agreement between employer/employee and/or with appropriate notice according to the relevant award/agreement.
What can employees do?
Employees may be eligible for government assistance during a stand down or when they are unable to attend work due to an enforceable government direction.
Employees who are stood down may be able to access paid and unpaid leave entitlements. However, it is important to note that this can affect employer and/or employee eligibility for government support and assistance.
Leave and support options
Unpaid Pandemic Leave
Employees required to self-isolate by government or medical authorities’ may be able to access up to 2 weeks of unpaid Pandemic leave. (Evidence may be required).
Annual Leave at half pay
Award covered employees can take annual leave at half pay for twice the length of time if their employer agrees.
Long Service Leave
An employer and a worker can agree to taking long service leave in smaller blocks, such as one or two days a week.
COVID-19 Disaster payment
The Federal Government COVID-19 Disaster Payment is a payment which employees can access to help when lockdown lasts for more than 7 days. Employees cannot get this payment for the first 7 days of lockdown. For more details about this payment, see here.
Pandemic Leave Disaster Payment
This is a lump sum payment to help during each 14 day period if an employee needs to self-isolate, quarantine or care for someone and cannot earn an income. There are eligibility criteria for the $1500 lump sum payment. For full details that apply to your state, click here.
Mental Health support
If you or your staff are experiencing any issues in coping with the impact of these lockdowns, there are a number of highly reputable support lines available, including:
Navigating the employment rules and support that relate to these latest restrictions is highly complex. Our team at Allan Hall HR are working hard to understand this fast-changing landscape and can help you to optimise the best solution for your industry and business. Please contact us directly at [email protected] or call 1300 675 393 if you wish to discuss your unique situation.
Working from the kitchen bench? Here’s how you sort your tax
With the end of financial year not far ahead, the Australian Taxation Office is reminding taxpayers how best to navigate working-from-home deductions.
The temporary shortcut method has been flagged as a method to consider this tax time.
The working-from-home shortcut method allows claims at the all-inclusive rate of 80 cents per hour, rather than needing to do complex calculations for specific items. It can be claimed by multiple taxpayers living under the same roof and, unlike existing methods, does not require a dedicated work area.
The shortcut method is straightforward; just multiply the hours worked at home by 80 cents.
The only proof required is a record of the number of hours you’ve worked from home, such as a timesheet.
That being said, taxpayers can still claim under the existing arrangements if they choose. If you decide to use an existing method, we encourage you to consult with the team at Allan Hall before you embark and keep good records. Keeping track of each individual expense and calculating the work-related use of each one can be fiddly, so be organised.
Three methods for claiming expenses
To claim any work-related expense, you must have spent the money yourself and not have been reimbursed. The expense must be directly related to earning income (not a private expense), and you must have kept any necessary records (a receipt is best). There are three ways to do this:
Claim a rate of 80 cents per work hour at home for all your working from home expenses — this is the shortcut method
Claim a rate of 52 cents per work hour at home for the heating, cooling, lighting and cleaning of your dedicated work area and the decline in value of office furniture and furnishings. Then calculate the work-related portion of your telephone and internet expenses, computer consumables, stationery and the decline in value of a computer, laptop or similar device, or
Claim the actual work-related portion of all your running expenses, which needs to be calculated on a reasonable basis.
Four no-go expense areas
The ATO has reminded us that if a taxpayer chooses to claim their working from expenses through the fixed rate or actual cost methods, they can’t claim the following:
Personal expenses like coffee, tea and toilet paper. While they might normally be supplied by your employer, they still aren’t directly related to earning your income.
Expenses related to your child’s education such as online learning courses or laptops.
Large expenses up front. Any asset costing over $300 (either in total or per item) such as a computer, can’t be claimed immediately. Instead, these claims should be spread out over a number of years.
Employees generally can’t claim occupancy expenses such as rent, mortgage interest, property insurance, land taxes and rates. Working from home does not mean your home is a place of business for tax purposes. If you claim occupancy expenses, you may have to pay capital gains tax when you sell your home, even if it is your main residence.
More information about working from home is available from ato.gov.au/home or contact Allan Hall’s Tax & Accounting specialists in Brookvale on 02 9981 2300 for specific advice about your circumstances.
