The ATO advises that the “shortcut” rate for claiming work-from-home running expenses has been extended, in recognition that many employees and business owners are still required to work from home due to COVID-19.
This shortcut deduction rate was previously extended to 30 September 2020, but will now be available until at least 31 December 2020.
Eligible employees and business owners, therefore, can choose to claim additional running expenses incurred between 1 March 2020 and 31 December 2020 at the rate of 80 cents per work hour, provided they keep a record (such as a timesheet or work logbook) of the number of hours worked from home during the period.
Whilst this “shortcut” rate may sound attractive, at Munro’s we have noticed that a lot of the time clients are better off claiming under the standard process. We know this because we always do our best to legally maximise your tax deductions and help you pay the minimum amount of tax legally possible.