If you have been working from home from 1 March 2020 to 30 June 2020 you may be able to claim a deduction for some expenses that you have incurred during this period.
To claim a deduction, you must have spent the money and the expense must be directly related to earning your income. You cannot claim where you have been reimbursed by your employer.
You can claim a deduction of 80 cents per hour for each hour that you work from home from 1 March 2020 to 30 June 2020 provided that you:
It should be noted that, the shortcut method covers all additional deductible running expenses such as:
If you use this method, you cannot claim any other expenses for working from home for that period.
Like all tax deductions, ensure that you keep records of your claim such as timesheets or diary entries.
It is important to understand that taxpayers have always been able to claim a tax deduction when they work from home provided they meet the eligibility criteria.
This is a shortcut method and may not get you the best result.
There are two other methods available to taxpayers depending on your circumstances.
For more information contact GROWBC on firstname.lastname@example.org
Paul Griffiths is a Chartered Accountant with over 20 years assisting Australian Small Businesses with income tax, succession and tax planning matters.