Tax claims - Working from home during COVID-19
You may be eligible for a TAX refund for working from home expenses but you must keep accurate records! The ATO has defined three ways you can choose to calculate your additional running expenses:
- Shortcut method ─ claim a rate of 80 cents per work hour for all additional running expenses
Fixed rate method ─ claim all of these
- a rate of 52 cents per work hour for heating, cooling, lighting, cleaning and the decline in value of office furniture
- the work-related portion of your actual costs of phone and internet expenses, computer consumables, stationery
- the work-related portion of the decline in value of a computer, laptop or similar device.
- Actual cost method ─ claim the actual work-related portion of all your running expenses, which you need to calculate on a reasonable basis.
With the ATO’s ‘shortcut method’, you can claim a deduction of 80 cents for each hour you work from home due to COVID-19. This covers all deductible running expenses including;
- electricity for lighting, cooling or heating and running electronic items used for work
- the decline in value and repair of capital items, such as home office furniture and furnishings
- cleaning expenses
- your phone costs, including the decline in value of the handset
- your internet costs
- computer consumables, such as printer ink
- the decline in value of a computer, laptop or similar device.
Records will need to be tracked and kept in order to make a tax claim, the ATO has advised to keep a record of the hours you worked at home, for example timesheets or diary notes.
We understand tracking these expenses and hours worked from home can be challenging, that’s where BundyPlus time & attendance solutions make record keeping a breeze!
In compliance with the ATO’s record keeping requirements, BundyPlus™ Now, a simple clock IN-OUT, BREAKS app which allows staff a convenient way to track their timesheets efficiently, employees can now make it easier for themselves when it comes to making a claim at tax time. BundyPlus™ Now is easy to use with real-time reporting giving both the employee and business owner peace of mind of a fair days work.
BundyPlus™ Now is free to download on your favourite app stores. Contact us to discuss a plan that suits you, and be better prepared during these difficult times.
This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances.