Work from home expense deduction extended till the end of the year - Accounts NextGen

Work from home expense deduction extended till the end of the year

Work from home expense deduction extended till the end of the year

It was a temporary method that was introduced to reduce the tax by up to 80% for those who are working from home. But now this method has been extended till 31 December 2020. This method was introduced in March but it has been further extended because a lot of workers are still working from home and the government is yet to open all the offices like earlier days.

As per the latest report from the ATO, December 31 is not the final date to end this rule, based on the situation of that time, this rule can be extended further than that.

Jon Jeffreys said in a statement that the government took care of the situation as the workers will not face a sudden burden of paying a tax that is double than what they were paying for the last 5-6 months.

Some people think that they can get all the other benefits like desktop, etc, along with this tax deduction which is not true. They will not get any other facility as mentioned above if they apply for the tax deduction. Anyone living in Australia who is working from home is eligible for only one of these services.

All such persons are advised to keep a proper record of these working hours. It is unlikely that ATO will audit this situation but you should keep the record nonetheless.

The shortcut that we are talking about is supplementary to the fixed-rate method of 52% and the real rate of calculating daily expenses. Based on one’s situation, you can choose which method to opt for.

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