Due to COVID-19 the government has made it easier for people to claim deductions for working from home.
This will allow people to claim 80 cents per hour for all running expenses, rather than calculating specific running expenses.
The additional running expenses included in the revised working from home shortcut method covers:
Electricity expenses related to heating and cooling the area you are using for work
Cleaning costs for your dedicated work area
Internet and phone expenses
Computer consumables eg ink, paper and printer as well as stationery
Home office equipment, including computer, printers, phones furniture and furnishings – you can claim either the full cost of items up to $300 or decline in value for items over $300.
A couple living together and both working from home can individually claim 80 cents per hour.
You also don’t need to have a dedicated working from home area.
All you need to do is keep a record of the hours you worked from home as evidence for your claim.
Importantly this shortcut arrangement doesn’t prohibit people using the existing method.
However 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.
Claims for working from home expenses prior to 1 March 2020 cannot use the shortcut method and must meet the pre-existing working from home approach and requirements.
This will be reviewed by the ATO for the next financial year, as the COVID-19 situation progresses.
More information is available at the ATO website here
Should you need advice or need to discuss your particular requirements, please contact us, Infinite Accounting Solutions, on 02 9899 4730 or via the contact page at www.ias-ca.com.au