The ATO's temporary shortcut method for calculating working from home related expenses on your tax return was initially only valid until 30 June 2020. This has now been extended to 30 June 2021.
What is the shortcut method for working from home?
You can claim a deduction of 80 cents for each hour you worked from home for the period between:
1 March 2020 to 30 June 2020 in your 2019/2020 tax return
1 July 2020 to 30 June 2021 in your 2020/2021 tax return
If you:
- were working from home to fulfil your employment duties. (This does not mean doing minimal tasks like occasionally checking emails or taking calls though)
- Incurred additional running expenses as a result of working from home
Unlike the Fixed rate method, the short cut method does NOT require you to have a dedicated work area such as a private study or office.
The working from home short cut method includes all additional deductible running expenses, including :
electricity for lighting, cooling or heating and running electronic items used for work (for example, your computer), and gas heating expenses
the decline in value and repair of capital items, such as home office furniture and furnishings including capital items that cost less than $300
cleaning expenses
your phone costs, including the decline in value of the handset
your internet costs
computer consumables, such as printer ink and stationery
the decline in value of a computer, laptop or similar device.
For more information on this tax deduction, refer to the ATO link here or for more information call us on 0409715577
For more information, or if you need a little help,
please contact us 0409 715 577
This articles intention is to inform rather than advise and is based on legislation at the time. Each Taxpayer’s circumstances vary so we strongly recommend that you discuss this information with your Tax Agent, Accountant or Bas Agent before implementation. If you take, or do not take action as a result of reading this article, we accept no responsibility for any financial loss incurred.
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