Work from Home Tax Deductions

Claiming work from home tax deductions on your online income tax return

Working from home has become the new normal for a majority of us, the great news is that there are certain tax deductions you can claim to give your tax refund a boost.

We’ll start with the most recent ‘work from home’ tax deduction, released by the ATO during the COVID-19 pandemic and has now been extended to the following dates from 1 March to 30 June 2021.

1 March to 30 June 2020 (2020 financial year)
1 July to 30 June 2021 (2021 financial year)

The ATO’s 80c shortcut method, seems like a quick and easy way to claim your work from home expenses.

The 80c shortcut method covers all of the home office costs you can think of i.e. your running costs, office furniture, office equipment, stationery, printer ink, pens, pencils etc and you don’t need to work  from a designated office.

All you need to do is provide the number of hours you worked from home on your tax return, then Gotax will calculate your claim.

But be careful, this can usually mean a smaller tax deduction which means you could be cutting your tax refund short.

The second method is the ATO’s normal home office running expense.

Claim 52c an hour for your home office running costs:

- Heating
- Cooling
- Lighting
- Office furniture
- Rent
- Mortgage Interest

In addition to this, you can also claim other expenses relating to you working from home i.e. depreciation on office equipment (laptops, computers, monitors etc.), a percentage of your phone & internet, stationery, printer ink, paper etc.

In order to claim the normal home office expense, there is a couple of rules you need to follow:

  1. You must work from a designated office (not your kitchen table or couch); and
  2. You must either keep the exact hours you worked from home, or if you have a regular work from home pattern, keep a 4-week consecutive logbook tracking your hours. If your work from home pattern changes – then you will need to write up an additional logbook with your new pattern.

And always remember the ATO’s 3 Golden Rules when claiming a tax deduction:

  1. It must be directly related to earning your income
  2. You must have a record to prove it
  3. You must not be reimbursed by your employer

Claim your work from home deductions here

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Note that the information provided is general in nature and subject to change, please contact one of our professionals who can evaluate your circumstances and provide more accurate advice to your current situation.