With many of us taking our work home over the past few months, here’s a cheat sheet on what you can claim come tax time.
This End of Financial Year (EOFY) is looking a little different this year, with a heap of changes being implemented to account for the COVID-19 pandemic and the changes it has caused to our working lives.
It could mean that you’ve had to work from home, or perhaps you were unfortunately stood down from your job due to economic pressures on your company.
So with tax time set to be somewhat unprecedented this year, we had a chat to AMP Financial Adviser, Andrew Heaven, about how to make sure all your ducks are in a row when it comes to submitting your return this EOFY.
Deductions during COVID-19
“With the changes to many Australians daily lives and working lives due to COVID-19, the government has recently released new guidance on claiming working from home expenses as a tax deduction,” says Andrew.
“As many have had to set up an office at home, it will be well worth familiarising yourself with the new guidelines to ensure you make the most of EOFY deductions.”
There are two other ‘methods’ you can use when claiming your COVID-related working from home expenses.
Fixed rate method
“The fixed rate method lets Australians claim a deduction of 52 cents for each hour worked from home for the additional work related expenses incurred,” Andrew explains.
This covers all expenses incurred for:
- Depreciation in value of home office furniture
- Utilities such as electricity and gas
- The cost of repairs to home office equipment and furniture
“To use this method, you need to have a dedicated work area, such as a home office when you work from home. It’s also worth noting that the fixed rate method doesn’t include phone, internet, computer and stationery, so these will need to be separately calculated,” says Andrew.