Claiming your deductions for working from home is now easier than ever, thanks to a simplified claiming process announced by the Australian Tax Office (ATO).
With many Australians now working from home due to COVID-19, the ATO announced that those working from home can now claim a fixed rate of 80 cents per hour come tax-time.
Taxpayers will also only be required to keep a record of the number of hours they have worked from home, rather than needing to calculate specific running expenses.
The requirement to have a dedicated area at home for work duties has also been removed.
These arrangements have been put in place for expenses incurred between 1 March 2020 and 30 June 2020. The ATO has undertaken to review these arrangements in line with COVID-19 developments to see if they are required for the next financial year.
These new arrangements do not prohibit Australians from making a standard working from home claim using the two customary methods should they wish to do so.
If you would like further clarification about this new process, please call us on 9887 8751 or simply send us an email.