CORONAVIRUS COVID-19 PANDEMICGENERAL PROPERTY

ATO increases home office deductions

Photo: Linkedin Sales Navigator on Unsplash
Print Friendly, PDF & Email

THE Australian Taxation Office has announced special and simplified arrangements to allow people working from home due to covid-19 to claim deductions for running expenses.

The new arrangement will allow people to claim a rate of 80 cents per hour for all their running expenses and multiple people living in the same house can claim this new rate.

Furthermore, the requirement to have a dedicated work from home area has also been removed and taxpayers are only required to keep a record of the number of hours worked from home.

Assistant Commissioner Karen Foat said the new shortcut method will make it easier for those who are working from home for the first time.

“This recognises that many taxpayers are working from home for the first time and makes claiming a deduction much easier.

“If you choose to use this shortcut method, all you need to do is keep a record of the hours you worked from home as evidence of your claim,” she said.

Claims for working from home expenses prior to 1 March 2020 cannot be calculated using the shortcut method, and must use the pre-existing working from home approach and requirements.

For those people working from home for 1 March to 30 June, there are three ways to calculate additional running expenses for the period, including:

  • claim a rate of 80 cents per work hour for all additional running expenses.
  • claim a rate of 52 cents per work hour for heating, cooling, lighting, cleaning and the decline in value of office furniture, plus calculate the work-related portion of your phone and internet expenses, computer consumables, stationery and the decline in value of a computer, laptop or similar device
  • claim the actual work-related portion of all your running expenses, which you need to calculate on a reasonable basis.

Meanwhile for claims for working from home expenses prior to 1 March, it should be calculated using the existing approaches and are subject to the existing requirements.

Related posts
GENERAL PROPERTY

From Toorak mansion to jail cell

FORMER TV presenter and property developer Simone Semmens has been sentenced to jail for GST fraud…
Read more
GENERAL PROPERTY

ATO landmark win to disqualify phoenix enabling liquidator

THE Australian Taxation Office has won a landmark case after the Federal Court disqualified a Sydney…
Read more
GENERAL PROPERTYRESIDENTIAL PROPERTY

ATO double audits of residential property investments

THE Australian Taxation Office is doubling the number of audits of rental deductions including…
Read more