Revealed: ATO announces massive changes that will make it easier for Aussies to claim expenses if they are working from home - here's what it means for you
- Australian Taxation Office has streamlined working from home expenses claims
- They will be able to make flat claim of 80 cents an hours instead of adding costs
- Workers will also be able to claim 52 cents an hour for electricity, depreciation
Australians working from home will have an easier time claiming tax deductions as coronavirus forces millions of people to stay away from the office.
The Australian Taxation Office has announced those working from their kitchen benchtop, study, dining table or bedroom will be able to claim 80 cents an hour.
They will only have to record the hours they have worked at home instead of adding up specific expenses like electricity and internet connection.
Australians working from home will have an easier time claiming tax deductions as coronavirus forces millions of people to stay away from the office. The Australian Taxation Office has announced those working from their kitchen benchtop, study, dining table or bedroom will be able to claim 80 cents an hour. Pictured is a woman working from home in Adelaide
Share this article
Multiple people living in the same house and working from home will also be allowed to claim the flat 80 cents an hour rate.
Those working from home will also be allowed to claim 52 cents an hour for heating, cooling, lighting, cleaning and the decline in value of office furniture.
The figure also includes the work-related portion of phone calls and internet connection, stationery and depreciation associated with laptops and computers.
The tax office has also removed a requirement to have a dedicated area at home for work duties.
The temporary measures to combat coronavirus will be in place for working from home expenses incurred between March 1 and June 30, 2020 when the financial year ends.
Assistant Treasurer Michael Sukkar said Australians would still be able to make expenses claims for household bills incurred during their home labour.
Those working from home will also be allowed to claim 52 cents an hour for heating, cooling, lighting, cleaning and the decline in value of office furniture. The figure also includes the work-related portion of phone calls and internet connection, stationery and depreciation associated with laptops and computers
'Today's announcement is yet another demonstration of how every arm of government is working to keep Australians in jobs and businesses in business, and to build a bridge to recovery on the other side,' he said.
'These new arrangements do not prohibit Australians from making a standard working from home claim using the two standard approaches should they wish to do so.'
The ATO's assistant commissioner Karen Foat said the tax office recognised working from home was a new experience for most Australian workers dealing with COVID-19.
'This recognises that many taxpayers are working from home for the first time and makes claiming a deduction much easier,' she said.
'If you choose to use this shortcut method, all you need to do is keep a record of the hours you worked from home as evidence of your claim.'
The ATO has provided a theoretical example of Bianca, an copy writer and editor who works from home and does video conferencing.
The woman in their example was allowed to claim her expenses at a rate of 80 cents an hour, provided she kept time sheets.
She is also entitled to make claims for expenses and depreciation under existing rules, where workers can get back 52 cents an hour.
Under this scenario, she would have to work out the decline in the value of equipment she had bought such as laptops and office furniture for the home.
The ATO's assistant commissioner Karen Foat said the tax office recognised working from home was a new experience for most Australian workers dealing with COVID-19 (fatality and cases map for Australia as of April 7, 2020)
