The Australian Taxation Office (ATO) is announcing special arrangements this year due to COVID-19 to make it easier for people to claim deductions for working from home.
The new arrangement will allow people to claim a rate of 80 cents per hour for all their running expenses, rather than needing to calculate costs for specific running expenses.
Multiple people living in the same house can claim this new rate. For example, a couple living together could each individually claim the 80 cents per hour rate. The requirement to have a dedicated work from home area has also been removed.
Working from home claims for 1 March to 30 JuneThere are three ways that you can choose to calculate your additional running expenses for the 1 March – 30 June period:
To claim a deduction for working from home, all of the following must apply:
Expenses you can claim
If you work from home, you will be able to claim a deduction for the additional running expenses you incur. These include:
The shortcut method rate covers all deductible running expenses, including:
If you use the shortcut method to claim a deduction for your additional running expenses, you cannot claim a further deduction for any of the expenses listed above.
You must keep a record of the number of hours you have worked from home as a result of COVID-19. Examples are timesheets, diary notes or rosters.
If you use the shortcut method to claim a deduction and you lodge your 2019-20 tax return through myGov or a tax agent, you must include the note ‘COVID-hourly rate’ in your tax return.
Records you must keepIf you use the shortcut method, you only need to keep a record of the hours you worked at home, for example timesheets or diary notes.
If you use the other methods, you must also keep a record of the number of hours you worked from home along with records of your expenses
Complimentary of the Australian Tax office as at 08/04/2020=
More informationFor more information, visit ato.gov.au/home or speak to us