Tax breaks extended for home workers

EMPLOYEES forced to work from home in the COVID-19 pandemic will continue to be able to apply for tax deductions, including for electricity use, internet expenses and depreciation of household goods.

Coffee, tea, milk and other general household items an employer would normally provide at work do not qualify.

The Morrison government yesterday welcomed the extension of the temporary arrangements put in place by the Australian Taxation Office to make it easier to claim deductions for working from home due to COVID-19.

According to a statement released by Minister for Housing and Assistant Treasurer Michael Sukkar, taxpayers working from home could continue to claim a rate of 80 cents per hour and will be required to keep a record only of the number of hours they have worked from home, rather than needing to calculate specific running expenses.

The scheme will run until September 30.

“The short-cut deduction method is making it easier for many Australians who are continuing to work from home due to COVID-19 when it comes to accurately completing their tax return,” the statement says.

“These continuing arrangements do not prohibit Australians from making a standard working-from-home claim using the two standard approaches should they wish to do so.”