Were you working from home during the March 1 to June 30 quarter because of the coronavirus pandemic?
If you have been working from home due to coronavirus, you are eligible for a new 80 cents per hour tax deduction for the June 2020 quarter, rather than the usual 52 cents per work hour method.
This new method introduced by the ATO allows taxpayers to claim 80 cents per hour for all home running expenses, rather than needing to calculate specific costs for running expenses, which is usually the case.
To claim using this new method, all you need to do is “keep a record of the hours you worked from home as evidence of your claim”. If there are multiple people living in the same house who are working from home, each will be able to claim the new rate. “For example, a couple living together could each individually claim the 80 cents per hour rate,” according to Assistant Commissioner Karen Foat.
An added benefit of this new method is the removal of the requirement to have a dedicated work-from-home area, meaning you don’t need to apportion use according to the space used in your home to work.
The same rules apply regarding the claiming of deductions, which include:
- Taxpayers must have spent the money themselves and not have been reimbursed,
- The claim must be directly related to earning income,
- There must be a record to substantiate the claim.
You still have the option to use the old 52 cents per hour method to claim for items such as heating, cooling, lighting, cleaning, and the decline in value of office furniture. However, this may be trickier to calculate during these Covid-times as more of the household may be home than normal, which will make accurately apportioning the use between what is personal and what is work-related more difficult.
Please get in contact if you have queries about what you can and can’t claim and our team of professional and knowledgeable accountants would be happy to help.
Source: ABC News