Working from home during COVID-19

Working from home during COVID-19

Due to the COVID-19 pandemic and the impact it has had on society and the workforce, there has been an unprecedented rise in the number of people working from home.

The ATO have introduced a temporary simplified method when claiming a deduction for working from home during the COVID-19 period. The rate has increased from 52 cents to 80 cents for every hour worked from home, from 1 March 2020 until at least 30 June 2020, with the potential for extension.

When can I claim a deduction?

• You must have paid for the expense
• The expense has to directly attribute to the earning of your income
• Have a kept record to prove the expense

*You cannot claim a deduction for:

• items provided by your employee,
• an item you have paid for, then been reimbursed by your employer

What expenses can I claim?

• Electricity expenses – heating, cooling & lighting the area where you are working
• Cleaning costs for a dedicated work area
• Phone and internet expenses
• Computer consumables and stationery
• Equipment including computers, printers, phones for full cost of items up to $300
• Any equipment > $300 can be depreciated each year

What expenses am I unable to claim?

• Mortgage, rent, interest & rates
• General household items an employer may usually provide eg tea, coffee

NEW – Shortcut Method to claim deductions

Backdating the period to 1 March 2020, as long as you were working from home to fulfil your usual employment duties, and incurring additional running expenses;

• You can claim a rate of 80 cents per work hour for all additional running expenses
• You do not need to have a previously required “dedicated area” you are working from

**NOTE: You may only use the 80 cents per hour of work rate from 1 March 2020, any deductions claimed for home office expenses between 1 July 2019 – 28 February 2020 must use the 52 cents rate, should you use the fixed rate method.

Fixed Rate Method – claim all of these

• 52 cents per work hour for heating, cooling, lighting, cleaning and the decline in value of office furniture
• The work-related portion of your actual costs of phone and internet expenses, computer consumables and stationery
• The work related portion of the decline in value of a computer, laptop or similar piece of equipment

Actual cost method

• Claim the actual work related portion of all your running expenses – this must be calculated on a reasonable basis

If you have any queries regarding the above, for assistance please contact us on (02) 4601 1000 [Camden] or (02) 4210 6030 [Wollongong].