Now that we’re learning to live with COVID and many people are allowed back to the office, what does that mean if you still work from home? Are you still entitled to claim the ATO’s shortcut method to claim for work from home expenses? Can you claim travel if you have a hybrid agreement? What are you allowed to deduct this tax time?
With the end of financial year coming up (it’s June 30), these are all questions you’ll soon need answered. Ahead, Gerry Incollingo, the Managing Partner of LCI Partners, breaks it down for us, sharing what you can save and can’t save on this tax time, if you work from home a couple days a week or full-time, as long as your company doesn’t reimburse you.
Keep in mind this is a broad overview, and if you do need clarification or more information on any expenses, be sure to visit the ATO’s website or connect with a certified tax accountant.
Aircon, Electricity or Gas, Heating
“You can claim a portion of the aircon, electricity or gas and heating related to keeping your workspace at the optimal temperature during working hours.”
Cleaning of Your Office
“You can also claim a portion of any professional cleaning services, though it’ll only be for the cleaning of the workspace area. The expense isn’t designed so you can get your entire home cleaned for free — sorry!”
Office Furniture and Equipment
“Depreciation in value of your workspace furniture, any office equipment and computers valued at more than $300 can also be claimed. Office furniture, computers, peripheral devices, or software less than $300 can be deducted for the full amount. You can also claim for the business portion of any printing, inks, toner, or office stationery.”
Internet and Mobile Phone
“You can also list as expenses Wi-Fi, landline and mobile phone bills, related to your work use. Be sure to track your usage for work and personal use for a month. This calculation can then be applied to the income year to save you tracking it for 12 months. If you use the shortcut method, this does not apply.”
Travel
“If you work from home, travel can also be claimed, but only if you are still expected to travel interstate or internationally for business or use your own vehicle to go between clients. The ATO will be keeping a close eye on travel expenses this tax time, particularly if you work from home, so it’s imperative to keep concise records.”
Rent or Mortgage (Provided You Fit Specific Criteria)
“If you are an employee working from home, you generally can’t claim for rent or mortgage payments, but if you also have a side hustle and an ABN, you may be able to deduct a portion for the hours spent on your own business — if you have a dedicated office, that is. Sitting at the dining room table and calling it your office is not a dedicated office space.”
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