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

James Morris
Published by:
James Morris
Published on:
April 07, 2020
Modoras Accounting (QLD) Pty Ltd ABN 81 601 145 215
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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.

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.

IMPORTANT INFORMATION: This blog has been prepared by Modoras Accounting (SYD) Pty. Ltd. ABN 81 601 145 215. The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals’ personal circumstances have been taken into consideration for the preparation of this material. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Accounting (SYD) Pty. Ltd. recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this blog can change without notice. Modoras Accounting (SYD) Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Accounting (SYD) Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Accounting (SYD) Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication. Liability limited by a scheme approved under Professional Standards Legislation.

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