Saving Tax in 2020-2021
The events of the past year have meant that more of us have been working from home and has led to changes in the way some work related deductions are dealt with in the tax return.
For the period 1 March 2020 to 30 September 2020, the ATO introduced a shortcut method to simplify calculation of a deduction for working from home based on the number of hours worked from home during this period.
- Phone and internet expenses
- The decline in value of Equipment and furniture
- Electricity and gas for heating, cooling and lighting
The formula to calculate the hours worked is:
- Hours worked per week x number of weeks worked = total hours worked
Claims for other work-related expenses, such as the following, are not included in the shortcut method and will need to be separately notified for inclusion in the tax return. Vehicle expenses – using ‘cents per kilometre’ or ‘logbook’ method. Clothing, laundry & dry-cleaning expenses. The clothing must be either occupation specific, protective clothing or a unique, distinctive uniform. Tools, equipment and other assets and their maintenance. Industry registrations, union dues, and work-related subscriptions. If you have any questions or want more information, please contact our office.