Working from home shortcut method

Due to frequent COVID lockdown’s, the ATO has confirmed the extension of the work-from-home shortcut method until the end of June 2022. This means you are still able to claim 80 cents for every hour you worked from home.

When claiming this shortcut method, you cannot claim other home office expenses as they are already factored into this hourly rate. This includes phone, internet, electricity and gas expenses, as well as the decline in value of equipment and furniture.

The shortcut method does not require a dedicated office space to claim, which allows more individuals to claim this method.

For record keeping, you only need to record the hours you worked from home using a timesheet, roster or diary etc.

However, please keep your receipts for any major purchases of equipment and furniture as you may wish to claim the decline in value in future years.

As well as the shortcut method, we are still able to claim a deduction using other methods (fixed rate and actual cost), therefore if you have copies of your phone, internet, electricity and equipment purchases, McFillin is able to determine which claim will work in your favour for your return.

The ATO is also looking at changing the fixed rate method for work-from-home for 2022-23 tax returns to make it simpler given more Australians are working from home longer term, hopefully we will hear more about this is the near future.

If you would like to read more about the home office expenses, please see the ATO link provided. https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/Home-office-expenses/