CA ANZ supports the publication of Inland Revenue's statement to assist taxpayers understand the square metre rate option and how to calculate their allowable deduction.
The statement is directed towards two groups: tax agents/accountants who prepare tax returns on behalf of clients; and self-employed persons who prepare their own tax returns. The explanation of how to calculate the deduction follows a logical flow. However, we are concerned that taxpayers who prepare their own returns may find the statement very technical and not practical. The purpose of the square metre rate is to simplify the deduction calculation, yet taxpayers may struggle to clearly understand how to apply the rules to their circumstances.