Home Office Deductions
working from home calculator
More businesses are providing their employees with flexibility. One trend we’ve seen on the rise is working from home. With self-quarantine and isolation during the COVID-19 outbreak, many businesses are moving into work from home arrangement to ensure business continuity.
If you work from home, you can claim the work-related proportions of household costs. Some examples include electricity, phone, internet, depreciation of office equipment and computer, stationery, etc.
How do you make your claim and what records do you need to keep?
The ATO prescribed three methods to calculate your running expenses.
Generally, the easiest method is the fixed rate method. This method allows you to claim a flat rate allowance of 52 cent per hour to cover the extra costs of heating, cooling and the depreciation of your furniture. You can also claim your work-related use for phone, internet, computer consumables and stationery, and depreciation of your equipment (e.g. laptops, phones, computers).
The ATO has introduced a temporary shortcut method due to COVID-19 to make it easier for people to claim deductions for working from home. Using this method, you can claim 80 cents per hour for each hour you work from home. This method can only be used from 1 March 2020 to 30 June 2021.
Another option is to claim the actual costs you’ve incurred as tax deductions. Using this method, the amount of records to keep is much higher and calculation is also more complex.
Download your free Working From Home Calculator
Our calculator assists you with keeping records of the hours you work from home, along with other claimable expenses and ATO resources. Just pop in your name and email below to download it.
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Talk to us if you want to find out more about what work from home deductions you can and can’t claim.