If you have been working from home due to COVID-19, then you will be able to claim expenses as a tax deduction in your upcoming tax return.
The easiest method to calculate your tax deduction is using the ATO’s special COVID-19 rate of 80 cents per work hour. Simple note down hours worked at home and multiply the total by 0.8 to calculate your tax deduction.
This special 80 cents rate has been made available by the ATO to cover all home office running expenses such as:
- Electricity
- The decline in value and repairs of capital items
- Cleaning
- Phone and internet
- Consumables and stationary
If you incur more costs than what is calculated using the special 80 cents rate, then you can still claim that amount provided you maintain all appropriate documentation to substantiate the costs and work-related connection.
To read other April 2020 Client Alerts, click here.