The current global pandemic (COVID-19) has had a drastic effect on many Australians, resulting in a loss of jobs, business closures and employees being compelled to work from home.
The ATO announced ‘new working from home rules’ which will take effect as of 1 March 2020 to 30 June 2020. This new rule includes a new fixed rate of 80 cents per hour which covers all other deductions.Taxpayers now have three options to calculate their ‘home office’ running costs.
These methods include:
- The old method which includes 52 cents per work hour to cover work related expenses such as internet, phone, computer, stationery, heating and electricity.
- The new shortcut method which is a fixed rate of 80c per hour to cover ALL work-related expenses (see below for what work related expenses are)
- Internet
- Phone costs
- Stationery
- Computer
- Furniture
- Electricity
- Decline of value of devices and future such as computers, laptops and furniture
- Repairs to furniture or devices
- The actual cost method which is calculating a percentage of your actual work-related expenses.
Unsure of which method to choose?
As tax rulings can be quite complex, it is common to be unsure on which method to choose in order to effectively calculate your tax return.
Here at Liro Accountants our experienced Tax Consultants bring value to our clients by providing detailed tax advice and help individuals lodge their tax returns. Contact us on (08) 6248 0381 and speak to one of our consultants today!