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April 07, 2020

Working From Home? Claim 80 cents Per Hour at Tax Time

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James Morris
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Those working from home due to COVID-19 may be eligible to claim for new tax deductions.

The Australian Tax Office is introducing a new method allowing people to claim 80 cents per hour for all running expenses, rather than needing to calculate costs for specific running expenses.

This change will apply from March 1 to June 30 2020, when the ATO will review the arrangement as the COVID-19 situation changes.

How do you claim?

This method of claiming will require a record of hours worked from home as evidence. The previous requirement of a specific work-from-home area has been removed.

Households with multiple people working from home will be able to claim the new rate also.

How else can you claim?

While the new way of claiming 80 cents per hour for hours worked at home will be available, claims by calculating all or part of running expenses is still accepted.

Taxpayers may calculate 52 cents per work hour for heating, cooling, lighting, cleaning and the decline in value of office furniture.

As an example, work related expenses may come from:

  • Work related phone and internet expenses
  • Computer consumables
  • Stationery
  • Decline in value of laptop, desktop or similar device

Calculating hours worked per year for the whole year could look like $0.52 38 hours per week for 48 weeks (keeping in mind holidays, public holidays etc.) = $948.48.

Phone and internet expenses are calculated at $0.25 for calls made from landline, $0.75 for calls made from a mobile and $0.10 for text messages, requiring a record if the claim goes over $50.

Home office expenses such as a chair costing less than $300 can be claimed outright, however a cost of over $300 will need to depreciation calculated.

Find out more:

It can be hard to stay on top of the constantly changing Government stimulus measures. That’s why we’re working hard to continually update new tools and information for you. To view our latest materials click here.

Below are some articles that may interest you:

Have questions on tax time and how to claim the maximum benefit? Our Modoras accounting professionals are ready to assist. Make well-informed business decisions; contact us on 1300 888 803 or book a catch up with a Modoras professional here.

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