Home Office Expenses COVID 19

The Australian Taxation Office (ATO) has a new method which will allow people to claim 80 cents per hour for all their running expenses, rather than needing to calculate costs for specific running expenses; COVID 19 Hourly rate 80 cents method

The changes will apply from March 1 2020 to June 30 2020, after which the ATO will review the arrangement for the next financial year as the COVID-19 situation progresses.

You can claim a deduction of 80 cents for each hour you work from home instead of recording all of your actual expenses for heating, cooling, lighting, cleaning and the decline in value of furniture.

Other methods are still available BUT you can only choose one method

52 cents fixed method; you can claim a deduction of 80 cents for each hour you work from home which covers the entire year from 1 July to 30 June

Actual running expenses; If you have a dedicated work area
you are able to claim home office equipment, including computers, printers and telephones. You can claim the full cost (for items costing up to $300) or the decline in value (for items costing $300 or more). If you’re self-employed, you may be able to immediately write-off equipment costing up to $20,000
work-related phone calls (including mobiles) and phone rental. You can claim a portion reflecting the share of work-related use of the line if you can show you are on call, or have to phone your staff, employer, customers or clients regularly while you are away from your workplace
heating, cooling and lighting
costs of repairs to your home office furniture and fittings
cleaning expenses
computer consumables, stationery, telephone and internet costs claimed on an actual expense basis.

occupancy expenses such as rent, mortgage interest, rates, land taxes and house insurance premiums (but only in limited circumstances) they can only be claimed for those taxpayers who are self-employed sub-contractors running their business from home, Employees and everyday workers can only claim running expenses
Claiming Occupancy Expenses; maybe subject to Capital Gains implications when it comes to selling your home especially when your set aside a portion of your home used for running your business

I’ve attached the following worksheet re Home Office Expenses COVID-19

Tax Incentives Pty Ltd Home Office Expenses COVID-19

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