Working from home deductions for 2021 tax year


The shortcut method introduced by the ATO for the 2020 tax year is again available for the 2021 tax year. The calculation is based on the total number of hours worked from home from 1 July 2020 to 30 June 2021. You must keep a record of the hours you worked from home. This could be a:
  • Time sheet
  • Roster
  • Diary
  • Similar document showing hours worked

The expenses that are covered has been expanded and include:

  • Electricity for lighting, heating or cooling and running electronic items used for work and gas for heating
  • Depreciation of capital items such as home office furniture and furnishings including items that cost less than $300
  • Cleaning costs for a dedicated work area
  • Phone costs including depreciation of the handset
  • Internet costs
  • Computer consumables e.g. printer ink and stationery
  • Depreciation of a computer, laptop or similar device
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’ (increased to 72 cents p/km) 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.