Get Paid to Work from Home: Claim Tax Deductions on Your Aussie Taxes

Hey there, fellow WFH Aussies! Have you been working from home due to the pandemic? Are you tired of spending your hard-earned cash on home office expenses? Well, guess what – you might be able to claim some of those expenses on your tax return!

But before you start dreaming about all the things you could buy with that extra cash (hello, new shoes!), let’s break down what work-from-home expenses you can actually claim on your taxes. Alright, let’s make this tax deduction process a little more interesting!

The Australian Taxation Office (ATO) has just unleashed some significant changes to calculate your WFH tax deductions. You may visit their Website for more information. Don’t worry; we’re here to guide you through this epic adventure! To claim your WFH expenses, you must:

• Be working from home for your job’s duties (not just doing tiny tasks like checking emails, oops!)
• Incur extra expenses while working from home
• Keep records to show these expenses

Now, pay attention because here come the awesome updates! To make things simpler, you have two methods to choose from: the “actual cost method” or the “revised fixed rate method.”

Let’s dive into the revised fixed rate method – ta-da! The fixed rate was 52 cents per hour, but it’s upgraded to a whopping 67 cents per hour worked from home. Plus, now it includes phone and internet expenses! No need for a separate home office; you can claim right from your cosy kitchen (yay for jammies!).

But wait, the ATO needs more evidence this time. Keep a record of your WFH hours, like timesheets, logs, or using cool time-tracking apps. And don’t forget to keep those phone and electricity bills safe and sound.

The actual cost method, on the other hand, means keeping track of every single expense like a true tax detective. It’s a bit tricky, but you can claim things like home office furniture, electricity bills, internet costs, stationery, and more. Just remember, you can only claim expenses directly related to work, not those fancy plants or cute desk lamps (sorry!).

Using the actual costs method, you work out your deduction by calculating the actual additional expenses you incur when working from home. This includes expenses you incur for:

• The decline in value of depreciating assets – think home office furniture (like that trusty desk and comfy chair), furnishings, phones, computers, laptops, and other work-related gadgets
• Electricity and gas (energy expenses) for heating, cooling, and lighting your dedicated workspace
• Home and mobile phone, data, and internet expenses to stay connected and power through your work tasks
• Stationery and computer consumables, such as printer ink and paper, to keep your superhero-worthy productivity flowing
• Cleaning your dedicated home office, because even superheroes need tidy workspaces!

Remember, if you use things like electricity or the internet for both personal and work reasons, you’ll need to divide the deduction. You can only claim the part that is related to your work.

So, for our little tax heroes, choose your method wisely, track your expenses, and claim your deductions like true champions. Happy tax time, and may the deductions be ever in your favor! And if all of this tax talk has you feeling a bit overwhelmed, don’t worry – that’s where we come in as your trusted accountants at Calculated Matters.

We are here to help you navigate the world of WFH expense tax deductions in Australia. We’ll make sure that you’re claiming all of the deductions you’re entitled to, and we’ll do it all with a smile (and maybe some bad tax jokes). So, what are you waiting for? Let’s claim those WFH expense tax deductions and put a little more money back in your pocket.

Get in touch with us today to get started! Our Accounting gurus would love to hear from you, give us a call now at 0425 223 390 or drop an email at business@calculatedmatters.com.au.