Working from Home Changes

for claiming deductions announced by the Australian Taxation Office

We recently included an article in the March Newsletter on how you can claim home office deductions. On 7 April 2020 the Australian Taxation Office have released a new method to claim a deduction for working from home due to COVID-19.

If you are required to work from home from 1 March 2020, the Australian Taxation Office will allow a deduction of 80 cents for every hour you work from home provided you are:

  • Performing your actual employment duties and not just carrying out minimal tasks such as reviewing and answering emails or phone calls; and
  • You are incurring additional home expenses due to working from home.

For this specific deduction, you do not need to have a separate dedicated office space. However, you must substantiate the number of hours worked by keeping a record of the number of hours worked from home. This could include time sheets, diary notes, rosters etc.

This method of claiming home office expenses covers all running costs such as:

  • Electricity, gas, etc
  • Purchase of normal office furniture
  • Phone and internet costs
  • Computer expenses such as printer ink, paper
  • Depreciation costs of a computer

For home office deductions prior to 1 March 2020, a deduction can be claimed using the existing methods as outlined in our latest newsletter.

The Australian Taxation Office will be reviewing this method for the next 2020/21 financial year.

If you have any questions about claiming home office deductions, please don't hesitate to call our office.