Announcement: Claiming Tax for Working from Home
The ATO has simplified the process for claiming work-related deductions.
Employees who are working from home can claim a flat rate of 80 cents per working hour to cover things like equipment and office expenses. This means if you currently work from home for 20 hours per week, you can claim $16 per week in tax deductions.
The flat rate can be claimed for any hours spent working (you are required to keep a log of hours worked at home) from 1 July to 30 June for the 2020-2021 tax year. This continues on from last year, where the flat rate was available to those working from home from 1 March 2020 - 30 June 2020.
The ATO has also removed the previous requirement for a dedicated home office to recognise that some people have needed to set up ad hoc spaces on their couch.
Claims for deductions from before 1 March 2020 must be made using the previous method, which means you will need to calculate all of your home office running costs separately or use the myDeductions tool: https://www.ato.gov.au/General/Online-services/In-detail/myDeductions/myDeductions/