Coronavirus: Australian Taxation Office increases working from home claim amount for some items

Wondering what you can claim in tax when working from home? Well it just got better.

The new shortcut enables people to claim a rate of 80c an hour for all their work-specific running expenses. Picture: iStock

Claiming deductions for working from home will be made easier for millions of Australians, after the Australian Taxation Office implemented special arrangements to make the system more straightforward.

The new shortcut enables people to claim a rate of 80c an hour for all their work-specific running expenses. The only evidence required will be time sheets proving the amount of time spent working from home.

In a statement, the ATO said from March 1 to June 30, workers can claim the new rate on all “additional running expenses”, or goods purchased specifically for home offices - such as laptops, desks and chairs.

The arrangement temporarily supersedes the previous system, and clarifies a potentially mind boggling exercise for people new to working from home. The previous method required people to calculate the depreciation on computers or laptops, and work-related portions of the laptop, stationary, phone or internet, before claiming the 52c an hour.

Other existing claims like heating, cooling, internet, stationery and lighting would still fall under the previous rate of 52c an hour.

ATO Assistant Commissioner Karen Foat said: “This recognises that many taxpayers are working from home for the first time and makes claiming a deduction much easier. If you choose to use this shortcut method, all you need to do is keep a record of the hours you worked from home as evidence of your claim.”

The ATO reminded people that three “golden rules” for deductions still applied. Taxpayers are required to have spent the money themselves, rather than being reimbursed; the claim must be directly related to earning income; and records are required to substantiate the claim.