Interest rate increases & COVID-related tax deductions

There’s been a lot of talk as we’ve emerged from the pandemic that official interest rates are set to head upwards for the first time in a very long time, and for me, yesterday’s RBA meeting solidified that further.

 

As I’ve said before, I expect there’ll be an increase to official interest rates in June, but some observers are tipping it might be August instead.

 

However, that’s only marginally relevant as the banks are clearly indicating they’re prepared to go it alone. The Commonwealth Bank in particular, has already lifted fixed rates on various products five times in the past three months.

 

In other news, as we approach the end of financial year in a couple of months, COVID-related tax deductions are becoming a talking point, so it’s time to start digging up all those old COVID receipts!

 

I’m talking masks, hand sanitiser, rapid antigen tests – anything COVID-related that you had to purchase for work.

 

And that’s the catch – the expenses must be directly related to your earning an income. However, given most COVID measures were mandated by governments, those things now become tax deductible.

 

In addition, legislation is set to pass on 1st July to specifically allow individuals and businesses to claim RATs as a tax deduction.

 

So, it’s time to get your financial records sorted and claim back as many of those costs as you can!