ATO’s ‘shortcut method’ for employees working from home due to COVID-19

 

With the ongoing lockdowns put in place due to COVID-19, working from home has become a commonplace. Tax returns this year is therefore anticipated to be a little different than we are accustomed to.

 

Employees affected by the lockdowns can access ATO’s temporary ‘shortcut method’ for claiming expenses until September 30, 2020.

 

With this simplified method, workers will be able to claim 80 cents per hour for each hour you worked from home within the period of March 1 to September 30.  If you are still currently working from home, you will still be able to make this claim for the next year’s tax return.

 

The shortcut method covers ALL WORK FROM HOME EXPENSES such as:

• Phone
• Internet
• Equipment and furniture depreciation
• Electricity and gas (for heating, cooling and lighting)

 

Important considerations:

• By choosing this ‘shortcut method’, you will not be able to claim any other expenses for working from home.
• Keep a record of the number of hours you worked from home (i.e. timesheet, roster, diary).

 

Alternatively, there are other calculation methods that you may use such as the fixed-rate method (claim 52 cents per hour) and the actual cost method (claim running costs).

 

Let us help you:

If you want to know more about the ‘shortcut method’ or whether the fixed-rate or actual cost method is the right one for you, talk to our team at Success Accounting Group and we will be more than happy to assist you.

 

Book your tax return here👉🏻 https://calendly.com/lan

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