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By D'Lene Browning
The ATO has announced special arrangements making it easier for people to claim deductions for working from home due to COVID-19.
They have developed a shortcut method which will allow people to claim a rate of 80 cents per hour for all their running expenses.
You are able to claim a deduction of 80 cents for each hour you work from home due to COVID-19 as long as you are:
You do not have to have a separate or dedicated area of your home set aside for working, such as a private study.
You must keep a record of the number of hours you have worked from home as a result of COVID-19. Examples are timesheets, diary notes or rosters.
Multiple people living in the same house can claim this new rate. For example, a couple living together could each individually claim the 80 cents per hour rate.
The new shortcut method will apply from March 1 to June 30, after which the ATO will review the arrangement for the next financial year as the COVID-19 situation progresses.
This new shortcut arrangement does not prohibit people from making a working from home claim under existing arrangements, where you calculate all or part of your running expenses.
For further information, see ATO article Employees working from home.
To read the media release regarding New working from home shortcut, click here.
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