- August 3, 2020
- Posted by: supreme
- Category: Tax
The COVID-19 pandemic has had a dramatic impact on the way we work, with widespread devastation to Australia’s workforce and a host of requirements and guidelines for businesses to continue to operate.
The significant changes have required a majority of Australian’s to work from home, with data coming from the Australia Bureau of Statistics suggesting that nearly half of our workforce have been forced to work from home – with that number set to grow with further lockdown announcements for businesses.
It’s tax time now, and many people are not aware of the deductions that can be claimed when working from home. There is also a specific flat rate method developed by the ATO for COVID-19. Here is what you need to know before lodging your income tax return.
Home Office Deductions
The ATO has removed the requirement to have a dedicated office area, as often more than one person per household is required to work from home. You can claim deductions on anything that you can use to work from home including:
- Office Furniture
- Computers, Monitors, Tablets, Phones & Work-Related Devices
- Stationery Items
- Cleaning Products & Materials
- Wear & Tear on Carpet, Curtains & Light Fittings
ATO Flat Rate Deduction Method For Utilities & Internet/Phone
The ATO has introduced a simple flat-rate method of 80 cents per hour for calculating the work-related portion of running expenses for utilities such as heating, cooling, lighting, and internet and phone.
This method is temporary and only available for the period of 1 March to 30 September 2020, unless further reviewed and revised.
The flat rate of 80 cents per hour has been introduced to remove the hassle of calculating the division of work and personal use, for example, the internet used for work only and internet used for home entertainment.
If more than one person is working from home per household, they can all claim the new rate of 80 cents per hour.
Note that the traditional method of calculating your proportion of use and depreciation can still be used as an alternative if prefered.
Car Expenses
You can also claim car expenses at 66 cents per kilometre, whenever you travel between your home office and your existing place of work.
CODID-19 is a changeling time for all, and at Supreme Tax Solutions, we are here to assist you. If you are looking for a qualified tax accountant that can maximise your deductions and increase your savings, please get in touch with us to lodge your income tax return today.