June 2021 Newsletter

Please click on the following link to view our monthly accounting/tax newsletter for

June – 2021

We would like to highlight the following article in this month’s newsletter:-

How COVID-19 has changed work-related expenses

COVID-19 has changed many taxpayers work situations. If you have been working from home, you may have expenses you can claim a deduction for at tax time. The ATO have introduced a temporary shortcut method to help taxpayers with the challenges of tracking their working from home expenses. The shortcut method initially applied from 1 March to 30 June 2020, however it has now been extended up until 30 June 2021.

Under the shortcut method, employees can claim a deduction of 80 cents for each hour they work from home. To claim using this method, you must keep a record of the number of hours you have worked from home. This could be a timesheet, roster, a diary or other documents that set out the hours you worked from home. The shortcut method covers all additional deductible running expenses, including:

  • electricity for lighting, cooling or heating and running electronic items used for work;
  • the decline in value and repair of capital items, such as home office furniture and furnishings;
  • cleaning expenses;
  • phone costs, including the decline in value of the handset;
  • internet costs;
  • computer consumables, such as printer ink and stationery; and
  • the decline in value of a computer, laptop or similar device.

Please note that the existing fixed rate and actual cost methods are also available for claiming work related expenses. We can advise on what method works best for your particular situation.

Please do not hesitate to contact us if you have any queries in relation to your tax and accounting matters.