If you are currently working from home, you can continue to claim 80 cents per hour tax deduction by keeping a record of the number of hours you have worked at home until 31st December 2020. This is instead of calculating all the specific expenses you normally claim from working from home. You just need to keep a timesheet of hours worked (from the date you started to work from home) as evidence of your claim in your tax return.

This simplified way of making the tax deduction was implemented to help those who were not used to working from home.

Now, there is only a month left of these temporary arrangements, so if you are planning to work from home into the New Year, you will need to choose another method for claiming working from home deductions.

Calculation methods

You can either continue to account for the hours you work at home at the previous fixed rate of 52 cents per hour, or calculate your actual running expenses which includes:

  • Heating
  • Cooling
  • Lighting
  • Cleaning
  • Decline of value of furniture used for business
  • Phone
  • Internet costs

You can also claim expenses for any new equipment such as a laptop, office desk and chair and any additional stationary – just keep all your receipts. If, however, your company has reimbursed you for those costs, you cannot claim them as an expense.

The ATO has a useful home office expense calculator you can use to work out your claim here.We will also assist you with this.

Employees who work from home can’t claim for:

  • coffee, tea, milk and other general household items
  • children and their education including
    • setting them up for online learning
    • teaching them at home
    • buying equipment such as iPads and desks
  • your employer pays for or repays you for the expense
  • the decline in value of items provided by your employer – for example, a laptop or a phone
  • for occupancy expenses such as rent, mortgage interest, water and rates (in most cases)

For houses where there are multiple people working there, you can continue to all individually claim the increased 80 cents per hour rate until 31st December 2020

If you have any questions, please get in touch on 08 9240 7629 or email: admin@taxproaustralia.com.au