When Home Becomes the Office: COVID-Era Deductions for Rent and Car Use Upheld (June 25 Tax Update)

Relevant For:

Employees and employers navigating work-from-home arrangements and travel deductions during lockdowns or remote work periods.

Key Points:

• A taxpayer forced to work from home during Melbourne's lockdowns successfully claimed rent and car expense deductions.
• The ART accepted that the second bedroom used as a home office was essential for income generation.
• Rent deductions were allowed as the home was deemed the primary workplace, not merely a residence.
• Car expenses for travel to ABC Studios were deductible, being directly linked to employment duties.
• This case highlights the evolving view of home-based workspaces under extraordinary circumstances.

Full Article:

The Administrative Review Tribunal (ART) has delivered a noteworthy decision supporting