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Enhanced home office tax deduction opportunities for your business

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Home Office Deductions during COVID-19

Last week, we looked at 3 tips to help you run your business from home during the coronavirus restrictions. This week, we highlight the new working from home expense rules recently announced by the Australian Taxation Office for this financial year.

The good news is that you’ve been spending time running your business from home, you’ll be able to claim increased tax deductions!

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What you can claim

Home office expenses you can claim

You can claim any or all of the following expenses if they’re directly related to you earning your income and you have the record/s to prove it:

electricity and/or gas.

home phone and internet expenses.

cleaning costs for your work area.

the decline in value of home office furniture, computers, and printers.

stationery items (including printer ink).

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How much?

How much you can claim

The ATO is temporarily allowing a ‘shortcut’ method of claiming home office expenses for the 2019/20 financial year. You can claim 80 cents an hour for each hour you work from home during COVID-19. You don’t need to have a separate work area in your home to make a claim.

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The records you need to keep

You should keep a record of the dates and the number of hours you worked from home as a result of COVID-19. You don’t need to keep receipts unless you aren’t using the ‘80 cents per hour’ claim method.

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We can help

How we can help

At Scorpion Bookkeeping, we can help you to maximise the home office tax deductions for your business during COVID-19. We can also help you with any other bookkeeping support services that you may need, no matter what type of business you have. We currently have clients in a diverse range of industries in South Australia, Victoria and New South Wales.

Ensuring that your bookkeeping is accurate and up to date can help your business to demonstrate your eligibility for any government support measures on offer for affected businesses during the coronavirus crisis. It’s important to get all the help you can get during this tough time and to make smart business decisions.

Contact us today to find out how we can help your business!

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