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Working from home deductions: “shortcut” rate extended

15th Aug, 2020

The ATO has extended, from 30 June 2020 to at least 30 September 2020, the “shortcut” rate for claiming work-from-home running expenses. This shortcut eligible taxpayers to claim running expenses incurred between 1 March 2020 and 30 September 2020 at the rate of 80 cents per work hour, provided they keep a record of the number of hours worked from home – for example, using a workplace timesheet.

People eligible to use the shortcut rate are employees and business owners who:

  • work from home to fulfil their employment duties or to run their business during the period 1 March 2020 to 30 September 2020; and
  • incur additional running expenses that are deductible under the tax

People who choose not to use the shortcut rate can instead:

  • claim 52 cents per work hour for running costs plus claiming the work-related portion of phone and internet expenses, computer consumables, stationery and the work-related portion of the decline in value of a computer, laptop or similar device; or
  • claim the actual work-related portion of all running expenses, which need

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