Working from Home Tax Deduction
Last updated 17th April 2020
The ATO have announced a new short cut method for individuals to claim a flat 80c per hour for all running expenses involved in working from home.
What is available
Covid-19 has forced people into their home offices, spiking work-related expenses that can be claimed as tax deductions.
The new arrangement allows people to claim a rate of 80c 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 and there is no requirement to have a dedicated work from home area.
What is the benefit to individuals?
The short cut method makes claiming work related expenses simple at tax time.
Important dates and other methods to apply
The new short cut method is available from 1st March 2020 and for expenses prior to 1st March 2020 you can refer to two ways of calculating your running expenses:
- Claim a fixed rate of 52c per hour
- Calculate your actual expenses
Workers may claim deductions based on money they have spent on expenses directly related to earning income. Workers must keep a record to prove it.
How to apply
Individuals can apply an 80c per hour deduction for hours worked at home in their annual tax return and need to keep a record of number of hours worked from home during the pandemic.
