Australians will be able to claim hand sanitiser and facemasks as part of this year's tax return, as well as a host of other working-from-home expenses.
The coronavirus shutdown has forced millions of Australians to work from home, but those who had to venture out in public as part of their job will be fully entitled to claim COVID-19 related expenses.
The Australian Tax Office admits 2020 has been a very difficult year for taxpayers, so they plan to make things easier come June 30.
But officials warn most people will not be able to claim the cost of laundry and travel expenses to and from work.
Australians will be able to claim hand sanitiser and facemasks as part of this year's tax return, as well as a host of other working-from-home expenses
'Taxpayers working in jobs that require physical contact or close proximity with customers or clients during COVID-19 measures may be able to claim a deduction for items such as gloves, face masks, sanitiser or anti-bacterial spray if they have paid for the items and not been reimbursed,' Australian Tax Office Assistant Commissioner Karen Foat said on Thursday.
'This includes industries like healthcare, retail and hospitality.'
To make things simpler, Ms Float said the Australian Tax Office will introduce a 'shortcut method' that automatically deducts 80 cents an hour for the costs incurred when working from home.
This includes things like internet use, air-conditioning and other utilities.
But because the e-filing shortcut is 'all inclusive,' taxpayers will not be able to make any additional working from home expenses claims.
Those who had to venture out in public as part of their job will be fully entitled to claim COVID-19 related expenses
Hand sanitiser has been a hot-ticket item since the COVID-19 lockdown took hold back in March. The product will now be tax deductible for millions of Australian workers
Although millions of workers will be able to take advantage of these deductions, The Australian Tax Office expects a substantial drop off in other claims.
'With more people working from home, working reduced hours or unfortunately not working at all, we expect to see claims for laundry expenses or travel expenses decline this year,' Ms Foat said.
'If you aren't travelling for work, you can't claim travel expenses. If you aren't wearing your work uniform, you can't claim laundry expenses.'
Ms Foat says there are still three golden rules when it comes to tax time, despite the pandemic.
'You must have spent the money and not have been reimbursed, it must relate directly to earning your income, and you must have a record to prove it,' she said.
Pictured: Adelaide woman Victoria Bowes in her study on April 2, before the government announced Australians could claim a flat rate of 80 cents an hour for working at home
The coronavirus has produced a unique tax year with millions of Australians forced to work from home. As a result, workers can claim a variety of expenses that may not have been possible in previous tax returns (stock image)
Meanwhile, experts have revealed their top tips for maximising tax returns next month, without falling foul of the rules.
Workers can claim a variety of expenses that may not have been possible in previous tax returns, says Julia Hartman, Principal of Ban Tacs National Accountants Group.
WORKING FROM HOME
You can claim expenses including: electricity, lighting, cleaning, heating, cooling, data, wear and tear on the home office, home internet, mobile phone use and stationary.
There are three different ways to claim.
1) The easy way
The Australia Tax office furniture hauling away (ATO) has introduced an 80 cents per hour rate you can claim to cover all your working from home expenses from March 1 to June 30, 2020.
This makes it easy for people working from home for the first time during the coronavirus pandemic lockdown period to just claim without teasing out and substantiating exactly how much time you used the phone for work and for home.
Australians working from home can claim expenses including: electricity, lighting, cleaning, heating, cooling, data, wear and tear on the home office, home internet, mobile phone use and stationary (stock image)
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You simply add up all the hours you worked from home between March 1 and June 30, and claim the 80 cents per hour.
However if you choose the 80 cents per hour rate you cannot claim separately for depreciation on your computer, use of internet, stationery or home phone. They are all tied up in the 80 cents an hour.
You will need to keep a diary record of the hours you spend working from home.
2) The hard way
You can individually work out each itemised category with receipts to prove each deduction.
Keep a diary record of the hours working from home, for at least one month to justify your claims to the ATO.
Pictured: Phoenix Crawford does school work on a laptop while his mum Donna Eddy replies to client emails on April 09, 2020 in Sydney, Australia
Celebrity Personal Trainer and Influencer Ana Coppola conducts a personal training session using Facetime. Australians can claim their mobile phone bill after working at home during the coronavirus pandemic
For example, if you calculate that you spend about 20 percent of your data costs on work each month, you can claim 20 percent of the monthly bill and then multiply it by 12 months.
Your diary can be used to work out the percentage of home internet and phone use dedicated to work.
Always remember to keep your receipts especially for stationary, couriers and postage.
Julia Hartman, founder of Ban Tacs National Accountants Group
3) The middle way
You can claim 52 cents per hour for your running costs for all the hours you worked from home. Then you can claim separately your other items such as stationary, internet, and furniture depreciation.
You will need to keep receipts to substantiate your claim.
TAX TRAP TO AVOID
The ATO has said that because the coronavirus has increased the number of people working from home, it is no longer enough just to keep a diary for one month this year.
You need to have a diary for one month showing your usage patterns before the coronavirus - and another for a month during the coronavirus shut down.
'This means that if you hadn't got around to keeping your one month diary before the Coronavirus shut down you will now not be able to claim any home office costs for that period - even though you thought you had the full year to get around to keeping one,' Ms Hartman said.
Some Australians working from home may have used their car more frequently for their job and can claim back 68 cents per kilometre up to 5000 kilometres (stock image)
The coronavirus shutdown has forced millions of Australians to work from home, but those who had to venture out in public as part of their job will be fully entitled to claim COVID-19 related expenses. The Australian Tax Office admits 2020 has been a very difficult year for taxpayers, so they plan to make things easier come June 30.
But officials warn most people will not be able to claim the cost of laundry and travel expenses to and from work.
Australians will be able to claim hand sanitiser and facemasks as part of this year's tax return, as well as a host of other working-from-home expenses
'Taxpayers working in jobs that require physical contact or close proximity with customers or clients during COVID-19 measures may be able to claim a deduction for items such as gloves, face masks, sanitiser or anti-bacterial spray if they have paid for the items and not been reimbursed,' Australian Tax Office Assistant Commissioner Karen Foat said on Thursday.
'This includes industries like healthcare, retail and hospitality.'
To make things simpler, Ms Float said the Australian Tax Office will introduce a 'shortcut method' that automatically deducts 80 cents an hour for the costs incurred when working from home.
This includes things like internet use, air-conditioning and other utilities.
But because the e-filing shortcut is 'all inclusive,' taxpayers will not be able to make any additional working from home expenses claims.
Those who had to venture out in public as part of their job will be fully entitled to claim COVID-19 related expenses
Hand sanitiser has been a hot-ticket item since the COVID-19 lockdown took hold back in March. The product will now be tax deductible for millions of Australian workers
Although millions of workers will be able to take advantage of these deductions, The Australian Tax Office expects a substantial drop off in other claims.
'With more people working from home, working reduced hours or unfortunately not working at all, we expect to see claims for laundry expenses or travel expenses decline this year,' Ms Foat said.
'If you aren't travelling for work, you can't claim travel expenses. If you aren't wearing your work uniform, you can't claim laundry expenses.'
Ms Foat says there are still three golden rules when it comes to tax time, despite the pandemic.
'You must have spent the money and not have been reimbursed, it must relate directly to earning your income, and you must have a record to prove it,' she said.
Pictured: Adelaide woman Victoria Bowes in her study on April 2, before the government announced Australians could claim a flat rate of 80 cents an hour for working at home
The coronavirus has produced a unique tax year with millions of Australians forced to work from home. As a result, workers can claim a variety of expenses that may not have been possible in previous tax returns (stock image)
Meanwhile, experts have revealed their top tips for maximising tax returns next month, without falling foul of the rules.
Workers can claim a variety of expenses that may not have been possible in previous tax returns, says Julia Hartman, Principal of Ban Tacs National Accountants Group.
WORKING FROM HOME
You can claim expenses including: electricity, lighting, cleaning, heating, cooling, data, wear and tear on the home office, home internet, mobile phone use and stationary.
There are three different ways to claim.
1) The easy way
The Australia Tax office furniture hauling away (ATO) has introduced an 80 cents per hour rate you can claim to cover all your working from home expenses from March 1 to June 30, 2020.
This makes it easy for people working from home for the first time during the coronavirus pandemic lockdown period to just claim without teasing out and substantiating exactly how much time you used the phone for work and for home.
Australians working from home can claim expenses including: electricity, lighting, cleaning, heating, cooling, data, wear and tear on the home office, home internet, mobile phone use and stationary (stock image)
RELATED ARTICLES
Previous
1
Next
Australians working from home could be hit with a massive... Airbnb owners are issued with an urgent warning ahead of a...
Share this article
Share
You simply add up all the hours you worked from home between March 1 and June 30, and claim the 80 cents per hour.
However if you choose the 80 cents per hour rate you cannot claim separately for depreciation on your computer, use of internet, stationery or home phone. They are all tied up in the 80 cents an hour.
You will need to keep a diary record of the hours you spend working from home.
2) The hard way
You can individually work out each itemised category with receipts to prove each deduction.
Keep a diary record of the hours working from home, for at least one month to justify your claims to the ATO.
Pictured: Phoenix Crawford does school work on a laptop while his mum Donna Eddy replies to client emails on April 09, 2020 in Sydney, Australia
Celebrity Personal Trainer and Influencer Ana Coppola conducts a personal training session using Facetime. Australians can claim their mobile phone bill after working at home during the coronavirus pandemic
For example, if you calculate that you spend about 20 percent of your data costs on work each month, you can claim 20 percent of the monthly bill and then multiply it by 12 months.
Your diary can be used to work out the percentage of home internet and phone use dedicated to work.
Always remember to keep your receipts especially for stationary, couriers and postage.
Julia Hartman, founder of Ban Tacs National Accountants Group
3) The middle way
You can claim 52 cents per hour for your running costs for all the hours you worked from home. Then you can claim separately your other items such as stationary, internet, and furniture depreciation.
You will need to keep receipts to substantiate your claim.
TAX TRAP TO AVOID
The ATO has said that because the coronavirus has increased the number of people working from home, it is no longer enough just to keep a diary for one month this year.
You need to have a diary for one month showing your usage patterns before the coronavirus - and another for a month during the coronavirus shut down.
'This means that if you hadn't got around to keeping your one month diary before the Coronavirus shut down you will now not be able to claim any home office costs for that period - even though you thought you had the full year to get around to keeping one,' Ms Hartman said.
Some Australians working from home may have used their car more frequently for their job and can claim back 68 cents per kilometre up to 5000 kilometres (stock image)
