Earn
ATO extends working-from-home tax deductions
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
The Tax Office has extended its simplified working-from-home deduction method for taxpayers for another three months into the new financial year.
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.
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.
About the author
About the author
Tax refund
ATO issues final warning as tax deadline looms
Time is running out for those who are still putting off taking the time to do their taxes. ...Read more
Tax refund
ATO set to improve comms skills after review
Australia’s tax collector has been told to get better at dealing with complaints, appeals and the rights of taxpayers. ...Read more
Tax refund
Late lodgers face fines but aren’t completely out of luck
It usually pays to lodge your taxes on time, but you have a few options if you miss the deadline. ...Read more
Tax refund
Side hustlers should take care when it comes to tax
Both side hustlers and more traditional SMBs need to think ahead when it comes to staying on top of their tax obligations. ...Read more
Tax refund
The ATO is targeting side hustlers: Here’s what you need to know
If you don’t keep on top of what your side hustle means for your tax obligations, you’re asking for trouble. ...Read more
Tax refund
Why your tax return could be better than usual this year
If there was ever a year when it was worth doing your taxes on time, it’s this one. ...Read more
Tax refund
ATO issues tax tips for first-time share and ETF investors
The ATO has offered a helping hand to first-time ETF investors facing the burden of lodging their tax returns. ...Read more
Tax refund
The tax trick that property investors need to get their renovation deductions in order
Knowing the difference between renovations and repairs can mean the difference between a timely tax return and an audit by the ATO. ...Read more
How the post-lockdown period will influence property, what the soaring NFT market means, and defining financial wellness
Listen now
APRA’s mortgage crackdown, the power of DeFi and last-minute tax tips
Listen now
What to expect as the end of lockdown looms? Will the Stage 2 tax cuts boost your tax return? Where should investors be looking as the economy reopens?
Listen now
Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?
Listen now
Tax refund
ATO issues final warning as tax deadline looms
Time is running out for those who are still putting off taking the time to do their taxes. ...Read more
Tax refund
ATO set to improve comms skills after review
Australia’s tax collector has been told to get better at dealing with complaints, appeals and the rights of taxpayers. ...Read more
Tax refund
Late lodgers face fines but aren’t completely out of luck
It usually pays to lodge your taxes on time, but you have a few options if you miss the deadline. ...Read more
Tax refund
Side hustlers should take care when it comes to tax
Both side hustlers and more traditional SMBs need to think ahead when it comes to staying on top of their tax obligations. ...Read more
Tax refund
The ATO is targeting side hustlers: Here’s what you need to know
If you don’t keep on top of what your side hustle means for your tax obligations, you’re asking for trouble. ...Read more
Tax refund
Why your tax return could be better than usual this year
If there was ever a year when it was worth doing your taxes on time, it’s this one. ...Read more
Tax refund
ATO issues tax tips for first-time share and ETF investors
The ATO has offered a helping hand to first-time ETF investors facing the burden of lodging their tax returns. ...Read more
Tax refund
The tax trick that property investors need to get their renovation deductions in order
Knowing the difference between renovations and repairs can mean the difference between a timely tax return and an audit by the ATO. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
