The Australian Taxation Office has further extended its temporary arrangements allowing workers to use a simplified method of calculating deduction for working from home.
Employees working from home can continue to claim a rate of 80 cents per hour by keeping a record of the number of hours they have worked from home, rather than needing to calculate specific running expenses, until 31 December 2020.
The shortcut was originally extended for an extra three months from the end of the 2019–20 financial year to 30 September.
The shortcut deduction method makes it easier for many Australians who are continuing to work from home due to COVID-19 when it comes to accurately completing their tax return
Employees can still claim the standard working-from-home expenses should they wish to do so.
The shortcut method can be used by all employees working from home between 1 March and 31 December 2020 if they:
> are working from home to fulfil their employment duties, not just carrying out minimal tasks such as occasionally checking emails or taking calls;
> have incurred additional running expenses as a result of working from home.
The shortcut method covers all work-from-home expenses, including: phone expenses internet expenses the decline in value of equipment and furniture electricity and gas for heating, cooling and lighting
However, the method is temporary and can only be used to work out your work-from-home deduction between 1 March and 30 June 2020 in the 2019–20 income year, as well as 1 July and 31 December 2020 in the 2020–21 income year.
In addition, no other expenses for working from home can be claimed should the shortcut method be used.
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