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ATO extends working-from-home tax deductions

  • July 10 2020
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ATO extends working-from-home tax deductions

By Cameron Micallef
July 10 2020

The Tax Office has extended its simplified working-from-home deduction method for taxpayers for another three months into the new financial year.

ATO extends working-from-home tax deductions

ATO extends working-from-home tax deductions

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  • July 10 2020
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The Tax Office has extended its simplified working-from-home deduction method for taxpayers for another three months into the new financial year.

ATO extends working-from-home tax deductions

Under the guidelines, workers can temporarily claim 80 cents per hour for hours worked at home until 30 September 2020, as the COVID-19 pandemic sees workers remain in their own homes.

The shortcut method was introduced in April to help taxpayers track working-from-home expenses, with COVID-19 restrictions forcing many workers to adopt remote-working practices.

It was originally meant to run from 1 March to 30 June, but the ATO noted at the time that it was open to extending the method, depending on when work patterns begin to return to normal.

The extension of the shortcut method comes as Melbourne faces reimposed lockdown restrictions in a bid to contain a growing number of COVID-19 community transmissions. As such, many Victorian businesses have now been forced to return to remote-working conditions.

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The ATO notes in its updated PCG that it will take into account the ongoing COVID-19 situation and may decide to extend the new method beyond 30 September.

The temporary shortcut method will continue to be supplementary to the 52 cents fixed-rate method and the actual cost method of calculating running expenses, with taxpayers able to choose the appropriate method for their circumstances.

The shortcut method will cover all deductible running expenses, including electricity for lighting, cooling or heating; running electronic items, phone and internet costs; and the decline in value of a computer, laptop, home office furniture and furnishings.

Records of the hours worked at home, in the form of time sheets or diary notes, will need to be kept to claim the shortcut method.

ATO extends working-from-home tax deductions
ATO extends working-from-home tax deductions
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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