Working From Home?

Due to COVID-19, Working From Home (WFH) expenses have changed. To help you work out the best rate for YOU, Sphere have created a Factsheet

Shortcut method $0.80 per hour

(available 1 July 2020 to 30 June 2021 for the 2021 financial year)

This method is claimable if you were working from home to fulfil your employment duties and incurred additional running expenses as a result.

The $0.80c per hour includes

  • Internet
  • Phone
  • Gas/electricity
  • Decline in home office furniture & computer/laptop etc (incl. new equipment) Printing & stationery
  • No need for a dedicated working area

If you claim the Shortcut method, you can’t claim any of the above items separately and you must exclude any breaks in your hourly figure and you must keep records of the number of hours worked eg. Timesheet, roster, diary etc as well as receipts for expenses in case of ATO query.

Fixed Rate method $0.52 per hour (available all year)

This method is claimable if you work from home for any period of your employment.

This method includes

  • Decline in home office furniture
  • Gas/electricity
  • Ideally have a dedicated working area

If you claim the Fixed Rate method, you  can  claim

  • internet/phone expenses  (work portion only),
  • printing & stationery,
  • decline in equipment eg laptop, computers etc,
  • any equipment purchased (but not reimbursed by your employer)

You will still need to keep a record of the hours spent working but this can be either through a diary of 4 weeks or a full year and retain receipts to prove the expenses if necessary.

As a guide, You  can

  • claim the fixed rate ($0.52ph) from 1 July 2020 to the date you commenced working from home due to COVID And
  • also claim the shortcut rate ($0.80ph) from your working from home date until 30 June 2021 – remembering the limitations of the shortcut rate.

OR  You  can

Claim the fixed rate ($0.52) across the whole year as normal (if you have work related home deductions as above)