The extension of the work-from-home shortcut method will be extended until 30 June 2022, in response to the many individuals still working from home due to COVID-19. To help you stay up to date, we’ve compiled a summary of the information provided by the ATO.
How it works
The work-from-home shortcut method was created to make it easier for taxpayers to claim home office expenses in their individual tax returns. The existing fixed-rate method ($0.52 per hour) and the actual cost method are still available options, however the shortcut method is seen to be more favourable as you aren’t required to have a dedicated office space and there’s less record keeping.
Individuals who work from home during the 2021-2022 tax year can claim a fixed rate of $0.80 per hour worked from home. If you are using this method, you cannot claim any other expenses for working from home, even if you bought new equipment.
What does it cover?
The shortcut method covers all your working from home expenses, such as:
- Phone expenses
- Internet expenses
- The decline in value of equipment and furniture
- Electricity and gas for heating, cooling and lighting.
The shortcut method includes decline in value of all items. If you’re using this method, you don’t need to separately calculate the decline in value of equipment or depreciating assets or any other working from home expense.
How our Accounting & Tax services can help
Even with a simple method to claim deductions, there’s often confusion about what you can and can’t claim. And that’s okay. That’s why our team of qualified tax accountants are here to work with you for a stress-free tax time.
Not only will our accounting team help maximise your tax return, but we will help you stay on the ATO’s good side by ensuring nothing is wrongfully claimed. Simply get in touch with us to get started.