top of page

Working from home or running a business from home? Here’s what you can deduct

A lot more people have been working from home because of the COVID-19 crisis.


To make it easier for people to claim deductions for working from home due to COVID-19 (even if not operating a business), the ATO will allow a rate of 80 cents per hour for running expenses and work-related phone and internet expenses incurred up to 30 June 2021.


If you do operate your business from a home office, you can deduct the expenses of running that office. A home office is a room in your home that is used exclusively (or almost exclusively) for business activities.


If you don’t have a home office, you can still claim “working from home” expenses, including:

  • Running Expenses – these are the increased costs from using your home for your business, including electricity or gas charges for heating, cooling and lighting, cleaning costs and the decline in value and the cost of repairs of deprecating assets such as furniture, furnishings and equipment; and

  • work-related phone and internet expenses, including the decline in value of a relevant device (e.g. handset, computer or laptop) – an apportionment will be required if the device is not used exclusively for work.


George Samaras

Principal


Taxation, Family and Business Lawyers

Recent Posts

See All

Application of promoter penalty laws - guidance

The ATO has released a practice statement which outlines the application of the promotor penalty laws. The Law Administration Practice Statement PS LA 2021/1 provides guidance on the application of D

Legislation for Director Identification Numbers

The Corporations (Director Identification Number) Data Standard 2021 (Instrument) requires that new and existing directors are to obtain Director Identification Numbers (DINs), which invokes an additi

Powers of attorney: Duties (NSW)

For the purposes of the Duties Act 1997 (NSW), Revenue NSW has refined its view on when a person under a power of attorney can affirm details provided to be valid and transparent. Someone under a powe

Comments


bottom of page