Experts have revealed their top tips for maximising tax returns next month, without falling foul of the rules.

The coronavirus pandemic 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, says Julia Hartman, Principal of Ban Tacs National Accountants Group. 






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)


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 (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 furniture removal 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)