Tax breaks for working from home

If you and your team are using this time to complete online training, carry out social media marketing, or any other elements related to your business, there are tax breaks you should be aware of.

The Australian Taxation Office (ATO) has announced the introduction of special arrangements for this financial year, to make it easier for people who have spent part of the year working from home.

This new arrangement will allow workers and business owners to claim a rate of 80 cents per hour for all running expenses, instead of calculating costs own certain running expenses.

Previously, those working from home needed to fulfil the requirement to have a dedicated work area in the house. Given the fact that the remote working arrangement was an unexpected fore most people, this requirement has now been removed.

“If you choose to use this shortcut method, all you need to do is keep a record of the hours you worked from home as evidence of your claim,” says a representative from the ATO.

Given that for many, working from home is a new experience, and as such the ATO highlights three rules for lodging a claim for a deduction. “Taxpayers must have spent the money themselves and not have been reimbursed, the claim must be directly related to earning income, and there must be a record to substantiate the claim,” says the representative.

 

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