After WA was plunged into another lockdown during the recent long weekend, it has become apparent how agile the Australian workforce has become. To support employees who work from home either during COVID or regularly, the ATO entitles them to claim tax deductions for expenses incurred.
To simplify the process of claiming home office expenses, the ATO introduced a shortcut method which applies for the 2020-21 financial year due to the impacts of COVID-19. Individuals can claim a fixed rate of $0.80 per hour worked from home. The shortcut method covers expenses such as phone expenses, internet expenses, depreciation on furniture & equipment and electricity and gas.
David Tomasi, Chairman of Moore Australia commented: “To their credit, ATO has significantly simplified the process of claiming tax deductions related to working from home. Although Australia has fared well throughout COVID, our working patterns have changed in step with the rest of the world, as expected. It is important that Australians are aware of their entitlements under the 'new normal'.”
To claim home office deductions using the shortcut method, individuals need to keep a record of actual hours worked at home. The shortcut method is not compulsory, and individuals can still claim based on actual expenses incurred, however, they would then have to comply with the necessary, and more complex, record keeping requirements.
For the full details on claiming the working from home tax deduction, visit the
Moore Australia website, or the ATO website.