COVID-19 Update – Employees working from home & What you can claim

New 80c/hr to cover ALL costs (for hours work between 1/03/2020 to 30/06/2020)

To make it easier for people to claim deductions for working from home, the ATO has announced a new shortcut method which will allow taxpayers to claim a rate of 80 cents per hour for all their running expenses, rather than needing to calculate costs for specific running expenses. Assistant Commissioner Karen Foat said the shortcut method “will only require you to keep a record of the number of hours worked from home”.

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. The ATO will review the special arrangement for the next financial year as the COVID-19 situation progresses.

See additional resources available to taxpayers – Employees working from home.

This 80c/hr method covers everything such as:

* Electricity;

* Depreciation on capital items (furniture & computers)

* Cleaning

* Phone and Internet bills

* Computer consumables (paper, ink etc)

* Stationery

The current two methods (i.e. actual and 52c/hr) methods are still available for the full year.  If you have any questions please make contact with us on 5437 9900.

Related Articles

The end of the financial year is an opportunity to optimise your financial strategy, take advantage of tax deductions, and set yourself up for the new financial year.Whether you're looking to...

Read more

With FY2024 behind us and FY2025 well underway, finalising your financial accounts and tax returns might feel like a routine task. However, updating your three-way forecast alongside your accountant-prepared financials is more than just compliance—it’s a strategic move that can impact your borrowing power, interest rates, and overall financial stability. Why Lenders Rely on Three-Way Forecasts…

Read more