Further extension on work-from-home shortcut method.

Following the prolonged lockdown in states across the country, it is expected Australians will continue to work from home more than they were before the pandemic.  As a result, the Australian Taxation Office has confirmed it will, yet again, extend the work-from-home shortcut deduction method until the end of June 2022.

This means eligible taxpayers are able to claim a fixed rate per hour (80 cents per hour) for most additional running expenses incurred when working from home. For most taxpayers, who find themselves working from home, this is the best option to use as it is easier to record and calculate and not as restrictive as other deduction methods.

The shortcut method covers all your working from home expenses, such as:

• phone expenses

• internet expenses

• the decline in value of equipment and furniture (receipts and records are to be kept for depreciation)

• electricity and gas for heating, cooling and lighting.

The guideline does not cover “occupancy expenses”, such as rent, mortgage interest, property insurance and land taxes.

However, there may be individuals where the alternative methods (fixed rate or actual expenses) may be more favourable. If you are unsure which method would be more beneficial to you, please get in touch with us.

If you need further information about the contents of this blog or our other editions, please contact us.