Current news from our news service

Hot Issues
spacer
COVID-19 resources - Jobkeeper, Victoria Stage 4 Update
spacer
JobKeeper Phase 2 - Latest Update
spacer
Payroll Tax 2020 concessions and JobKeeper
spacer
High alert issued over myGov tax time scam
spacer
Extended director penalty regime to catch out ‘zombie companies’
spacer
SG amnesty deadline - 7 September
spacer
‘Hundreds’ to be contacted in ATO early super compliance blitz
spacer
90,000 SMEs to benefit from new JobTrainer program
spacer
Work Related expenses – 2020
spacer
‘Everyone is now on notice’: ATO acquires COVID-19 data on 3m Aussies
spacer
Extra Tools & Resources for our clients.
spacer
Year End Tax Deductions – “equipment”
spacer
Home Office Claims 2020
spacer
Early release of super sees ‘high take-up’
spacer
Tax time 2020: ATO homes in on rental deduction claims
spacer
ATO announces Div 7A COVID-19 assistance
spacer
‘HomeBuilder’ grants now available.
spacer
$150k instant asset write-off extended for 6 months
spacer
EOFY considerations and 3 Tax Time Checklists
spacer
JobKeeper documentation ‘absolutely critical’ in ATO audit
spacer
ATO updates JobKeeper compliance approach
spacer
COVID-19 hotspots - tax time 2020
spacer
Tax reform to feature heavily in PM’s JobMaker plan
spacer
Jobkeeper Fraud warning
spacer
ATO extends initial JobKeeper payment deadline
spacer
Boosting cash flow - ATO
spacer
Our website, your resources
spacer
ATO releases JobKeeper alternative test
Article archive
spacer
Quarter 2 April - June 2020
spacer
Quarter 1 January - March 2020
spacer
Quarter 4 October - December 2019
spacer
Quarter 3 July - September 2019
spacer
Quarter 2 April - June 2019
spacer
Quarter 1 January - March 2019
spacer
Quarter 4 October - December 2018
spacer
Quarter 3 July - September 2018
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
Now I’m working from home, what can I claim?

As more people are now working from home many are wondering what can and can’t be claimed and what records they need to keep. The following information, plus some tools and fact sheets, will help but your accountant and financial planner can help you the most with this question.

       

What tax deductions can you claim?

If you work from home, you can claim the work-related proportions of household costs such as:

  • Heating, cooling and lighting bills
  • Costs of cleaning your home working area
  • Depreciation of home office furniture and fittings
  • Depreciation of office equipment and computers
  • Costs of repairing home office equipment, furniture and furnishings
  • Small capital items such as furniture and computer equipment costing less than $300 can be written off in full immediately (they don’t need to be depreciated)
  • Computer consumables (like printer ink) and stationery
  • Phone (mobile and/or landline) and internet expenses

Ideally, you should have a specific room set aside as a home office. If you are using a room with a dual purpose (e.g. dining room), or a room shared with others (e.g. lounge room) you can only claim the expenses for the hours you had exclusive use of the area.

How do you claim?

New method released 7th April

The impact of the COVID-19 pandemic has led the Australian Taxation Office to introduce a ‘special’ method for claiming ‘working from home expenses’. 

This special new arrangement will apply from March 1 to June 30 2020 and will allow people to claim a rate of 80 cents per hour for all relevant expenses. 

Other important aspects of this new method are that multiple people living in the same house can claim this new rate individually, and it is no longer a requirement to have a dedicated work from home area in order to claim.

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

It is important to remember the dates to which this special new arrangement apply.  Claims for working from home expenses prior to March 1 can’t be calculated using the shortcut method.

This new shortcut arrangement does not stop people from making a working from home claim under the existing arrangements, which involves calculating all or part of your running expenses.

The ATO will review the special arrangement for the next financial year as the COVID-19 situation progresses.

 

Pre 1-3-2020, post 30-6-2020 methods. 

Diary method/actual running expenses

Keep a diary to work out how much of your household running expenses relate to doing work in your home office. The diary needs to detail the time you spend in the home office, compared with other users of the home office. Keep your diary record for a representative four-week period. The ‘work-use proportion’ can then be used to determine your work-related claim, for whatever period of time they are required by the Government or Employer regulation to work from home. Of the two methods this usually produces the larger deduction, but the record-keeping requirements are more stringent.

It may well be that you are already working from home from time to time but that the amount of remote working will spike over the next few weeks or months. If that’s the case, keep a separate diary for the period of your ‘corona-induced’ home working to justify the larger claim for this period – but don’t try to apply this larger work-related proportion to the whole year!

ATO rate per hour method

Alternatively, you can use a fixed rate of 52 cents per hour for home office expenses for heating, cooling, lighting and the decline in value of furniture, instead of keeping details of actual costs. You just need to keep a record of the number of hours you use the home office and multiply that by 52 cents per hour.

In addition to claiming 52 cents per hour, you can also make a separate claim for:

  • phone and internet expenses;
  • computer consumables and stationery; and
  • depreciation of computers or other equipment.

Finally, a word of warning: it is quite common for people to have insufficient documentation to support a home office claim, particularly around the proportionate split between business use and personal use so be sure to keep records.

The ATO have calculators (at present only the 2018/19 is available) available to assist you with calculating these deductions and links below for more information.

 

 

Based on ATO information and resources.

 

site By PlannerWeb