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Working from Home Deduction: ATO Extension of Shortcut Calculating Method

The ATO has announced its extension of the time-limited ‘Shortcut’ Calculating method for Working from Home deductions, in light of increased COVID-19 restrictions in Victoria.

Under the amended Practical Compliance Guideline 2020/3, using the ‘Shortcut Method’, individuals (employees & business owners) are now able to claim 80 cents per hour for each hour worked from home during the period 1 March 2020 to 30 September 2020.

The ‘Shortcut Method’ will cover all deductible running expenses (including electricity or gas for lighting, cooling or heating), running electronic items, phone and internet costs, and the decline in value of a computer, laptop, home office furniture and furnishings.

To claim the method, you must keep a record of the number of hours you have worked from home to fulfill your employment duties. Such record-keeping methods could include a timesheet, roster, diary, or documents which set-out the number of hours you have worked from home.

Alongside the ‘Shortcut Method’, both the ‘Fixed-Rate (52 cents) Method’ and ‘Actual-Cost’ Method will continue to be available, with individuals needing to determine which method appropriately applies to their circumstances.

Furthermore, as part of the announced amendment, consideration will be given as to whether the Guideline continues to apply beyond 30 September 2020.

To access a full copy of the Guideline – please click here.

How Archer Gowland can Help?

Should you have any questions or if we can be of assistance in this matter, please feel free to contact our office on (07) 3002 2699.

   
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