Simplified home office deductions method extended
The ATO has extended the use of the simplified home office deductions method until 31 December 2020.
The ATO has produced a compliance guideline outlining a new shortcut method that can be used by taxpayers to claim running expenses when working from home.
The relaxed rules were originally intended to apply during the period from 1 March 2020 until 30 June 2020. In July the ATO extended this until 30 September 2020, with the ATO now extending the period further to 31 December 2020. The ATO indicates that this could potentially be extended again.
The shortcut method set out in the PCG allows qualifying individuals to claim a deduction using a standard rate of 80 cents per hour, for each hour worked from home during the relevant period.
As we wrote about in August, the shortcut method has been designed for workers who have had to work from home, however it is not always the best method for deducting expenses. Speak to your accountant on 02 9957 4033 about which method is best for your particular circumstances.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.