February 25, 2022

Working from home? Info on tax deductions you may be able to claim

With more employees now working from home because of COVID-19 containment measures, the Australian Tax Office (ATO) has issued information on expenses that may be claimable at tax time.

With more employees now working from home because of COVID-19 containment measures, the Australian Tax Office (ATO) has issued information on expenses that may be claimable at tax time.To claim a deduction for working from home, all of the following must apply:

  • You must have spent the money.
  • The expense must be directly related to earning your income.
  • You must have a record to prove it.

You cannot claim a deduction for items provided by your employer or if you have been reimbursed for the expense.If you are not reimbursed by your employer, but instead receive an allowance from them to cover your expenses when you work from home, you:

  • must include this allowance as income in your tax return.
  • can claim a deduction as outlined by the ATO.

On the Australian Taxation Office website, you can find a full run-down of information including:

  • Expenses you can claim
  • Expenses you can't claim
  • How to calculate running expenses
  • An explanation of the 'shortcut method' of tracking expenses (a temporary measure in place until at least 30 June 2020)
  • Records you must keep with further information available here

As always, please check in with your financial adviser or registered tax professional if you have questions.

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