Home in on your tax
Now is the time to spend to reap tax benefits, writes
Anthony Keane
AS millions of Australians bring their work home, it’s creating opportunities for welcome tax deductions – and now is the time to spend.
Australian Bureau of Statistics data has shown that about half of the workforce uses the internet for home- based work, while several other studies have reported a rapid rise in home offices.
It’s estimated that at least one- third of Australians work regularly from home, and NDA Law managing director Andrea Michaels said this reflected changing work patterns and fewer traditional office jobs.
“It’s more work from home, subcontracting and consulting work,” she said.
This means greater potential for people to claim deductions for the work- related portion of energy costs, phone use, computers, internet connections, stationery, desks, chairs and other home office furniture.
Expenses paid in late June can become tax deductions from July, and small business owners can claim an immediate upfront deduction for any purchase below $ 20,000. Regular workers can claim instant deductions for purchases below $ 300, or write down the value of more expensive items over time.
“Unless they have their own small business at home and are working 40 hours a week in the home office, most people won’t keep the paperwork or diary