80 cents per hour ‘shortcut’ method

80 cents per hour ‘shortcut’ method

80 cents per hour ‘shortcut’ method for home office expenses has been extended

Back in April 2020 the ATO announced that a ‘shortcut’ method was to be made available to use from 1 March 2020 until 30 June 2020 for individuals claiming home office expenses due to COVID-19.  The ATO has recently announced an extension of this shortcut method to also include 1 July 2020 to 30 September 2020

In summary, a taxpayer can claim a deduction of 80 cents for each hour they work from home due to COVID-19 as long as the individual is:

Working from home to fulfil their employment duties and not just carrying out minimal tasks such as occasionally checking emails or taking calls; and

Incurring additional deductible running expenses as a result of working from home.

A taxpayer does not have to have a separate or dedicated area of their home set aside for working, such as a private study.

The shortcut method rate covers all deductible running expenses such as: electricity and gas  used for heating/cooling and running electronic items used for work purposes; depreciation and repair of assets used for work purposes; work-related phone and internet costs.