The Covid-19 outbreak has forced employers to require staff to work from home (if their can) to ensure they minimise any risk of exposure to the virus. While it is not ideal, it means that, in part, a lot of businesses can continue operations. This has resulted in temporary home offices being set up throughout the country. If you are not used to working from home, then you may not be aware that there are a range of deductions you can claim for home office expenses.

The key to maximising your deductions is to determine where you are going to work in your home and ensuring you keep diary evidence of hours worked.

Deductions for expenses can include:

  • The use of equipment – the decline in value of your computer, computer equipment, furniture in the area you use for work
  • Utilities – electricity, heating and cooling, cleaning
  • Phone and Internet usage
  • Stationary costs – printer ink, paper

There are two different ways to claim.

Fixed or actual?

You can claim a fixed rate of 52 cents per hour you work from home, or you can claim the actual costs which requires you to make a number of calculations based on floor area, percentage of use, cost per unit of power, and percentage of the year that you used those depreciating assets exclusively for work.

For a more detailed breakdown and scenarios click here

Both methods require you to keep records for a 4 -week period in each income year if you want to claim deductions over $50, diary evidence of hours worked, receipts for work purchases and telephone/internet bills.

The ATO has also released a useful fact sheet for working at home, which can be found in our downloads section on the website click here.

For individuals, these deductions can be claimed in your 19/20 financial year tax return.