Flat rate tax relief for WFH

AUSTRALIANS working from home because of the coronavirus pandemic will be able to claim an easy tax deduction for their expenses.

The Australian Taxation Office will let workers claim a flat rate of 80 cents per hour for their working expenses, rather than having to calculate individual deductions and costs. Workers are simply required to record their hours.

CLAIMING tax deductions for working from home will be made easier for millions of people under special arrangements put in place to simplify the system.

The Australian Taxation Office has announced that as the coronavirus pandemic affects the economy, it will allow people working from home to use a “shortcut method” to calculate their extra expenses.

It will enable people to claim 80c per work hour for all their work-specific expenses. Those who claim will have to keep time sheets that detail the periods spent working from home.

In a statement yesterday, the ATO said that for the period from March 1 to June 30, workers could claim the rate to cover “additional running expenses”, including the cost for home office equipment such as laptops, desks and chairs.

Alternatively, workers need to make claims using the “actual cost method” or the “fixed rate method”.

Those using the actualcost method claim the workrelated portion of all their running expenses.

These needed to be calculated “on a reasonable basis”, the tax office said.

Under the fixed-rate method, workers can claim 52c per work hour for heating, cooling, lighting, cleaning and the decline in value of office furniture.

They can also claim the work-related portion of phone and internet expenses and costs for computer consumables and stationery under that method, and the work-related portion of the decline in value of PCs, laptops or similar devices.

The ATO is reminding people three “golden rules” for deductions still apply.

Taxpayers are required to have spent the money themselves — so they can’t claim for items provided by their employers, or where employers will reimburse them.

While the shortcut method is only available for claims on expenses incurred until June 30, the ATO said it may extend it.