Michael Sukkar MP

SIMPLIFIED WORKING FROM HOME DEDUCTIONS EXTENDED UNTIL END OF 2020-21 INCOME YEAR

THE HON MICHAEL SUKKAR MP
Minister for Housing and Assistant Treasurer

MEDIA RELEASE

18 December 2020

SIMPLIFIED WORKING FROM HOME DEDUCTIONS EXTENDED UNTIL END OF 2020-21 INCOME YEAR

The Morrison Government has welcomed the further extension of the temporary arrangements put in place by the Australian Tax Office (ATO) to make it easier to claim deductions for working from home due to COVID-19 pandemic.

This means eligible taxpayers can use the working from home short cut deduction method to claim all their working from home expenses for the periods from 1 March to 30 June 2020, and the entire 2020-21 income year.

The short cut allows eligible taxpayers to claim a rate of 80 cents per hour by simply keeping a record of the number of hours they have worked from home, rather than needing to calculate specific running expenses.

This has made it easier for many Australians who have, or are still, working from home due to the COVID-19 pandemic, enabling them to accurately complete their tax returns.

It is vital for Australians to keep good records now, to make it easier to get any deductions right when it comes time to lodge their tax return.

Importantly, these continuing arrangements do not prevent Australians from making a standard working from home claim using the two standard approaches should they wish to do so.

For further information about these new arrangements visit: https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/Home-office-expenses/.

It you require urgent assistance with your tax affairs due to the COVID-19 pandemic you should contact the ATO’s Emergency Support Infoline 1800 806 218.