Working from home

Dear Client

We recognise that due to COVID-19, a significant number of employees and business owners started working from home from 1 March and are incurring additional running expenses in relation to their income producing activities.

To make it easier when claiming a deduction for additional running costs you incur as a result of working from home, we introduced a temporary shortcut method. This method allows you to claim a rate of 80 cents per hour for all your running expenses, rather than having to calculate the additional amount you incurred for specific running expenses.

You can use this method from 1 March 2020 to 30 June 2021. You may still use one of the existing methods to calculate your running expenses if you would prefer to.

Increasing the instant asset write-off

From 12 March 2020 until 31 December 2020, the instant asset write-off:

  • threshold is $150,000 (up from $30,000)
  • eligibility range covers businesses with an aggregated turnover of less than $500 million (up from $50 million).

Businesses with a turnover of $500 million or more are not eligible to use instant asset write-off.

From 1 January 2021, the instant asset write-off will only be available for small businesses with a turnover of less than $10 million and the threshold will be $1,000.

Backing business investment

Businesses with an aggregated turnover of less than $500 million are able to accelerate their depreciation deductions on the purchase of certain new depreciable assets.

This applies to eligible assets acquired and first used or installed ready for use from 12 March 2020 until 30 June 2021.

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