As a consequence of COVID-19, many employees are now working from home.
To make it easier for people to claim deductions when working from home, the ATO yesterday announced a new shortcut method which will allow taxpayers to claim a rate of 80 cents per hour for all their running expenses, rather than needing to calculate costs for specific running expenses. Therefore, the ATO will only require you to keep a record of the number of hours worked from home as evidence of their claim.
This concession applies from 1 March 2020.
The ATO will review this concession for the next financial year as the COVID-19 situation unfolds.
According to the ATO, the simplified method will encompass all deductible running expenses, including electricity for heating, cooling and lighting; phone and internet expenses; and the decline in value of computers, printers, phones, furniture and furnishings.