Due to COVID19 the ATO is temporarily allowing us three options to calculate our home office expenses.
- shortcut method ─ (only available for work conducted between 01 March 2020 – 31 December 2020)
Claim a rate of 80 cents per work hour to cover all additional running expenses. You are not required to have a dedicated work area for this particular method.
If you use this method between 01 March – 30 September 2020, you cannot claim other office expenses such as telephone, depreciation, etc.
- fixed rate method ─ you may claim all of these
- a rate of 52 cents per work hour to cover heating, cooling, lighting, cleaning and the decline in value of office furniture
- the work-related portion of your actual costs of phone and internet expenses, computer consumables, stationery
- the work-related portion of the decline in value of a computer, laptop or similar device.
- actual cost method ─ claim the actual work-related portion of all your running expenses. You need to use a reasonable basis to calculate this.
For full details about eligibility, and what you can and cannot claim, please see here.