Working from home tax deductions

Work from home

The ATO has introduced a simplified method for claiming deductions for anyone working from home as a result of COVID-19. Between 1 March and 30 June 2020, taxpayers will be able to claim 80 cents per work hour for all their additional running expenses, rather than needing to calculate costs for specific running expenses. The shortcut method requires you to keep a record of the number of hours worked from home.

This new method is designed to make tax returns simpler for anybody who has recently transitioned to working from home due to COVID-19, and ensures they are able to easily claim their relevant deductions.

Claims for working from home expenses prior to 1 March 2020 cannot be calculated using the shortcut method, and must use the pre-existing working from home approach and requirements.

This was specifically designed due to the evolving nature of COVID-19 and the new temporary way of working that businesses have had to apply. For more examples see the ATO website or consult your nominated tax accountant.

For further information about ATO measures and tailored support during COVID-19 view ato.gov.au/COVID-19.