If you're working from home, you may be able to claim a tax deduction for additional running expenses you incurred while performing your job. These can include:
electricity expenses like heating, cooling and lighting in your home work area
phone and internet expenses
decline in value of home office equipment and furniture, including printers, phones, furniture and furnishings.
With more people working from home due to COVID-19, we temporarily introduced a shortcut method to simplify how you work out your deduction. Using this method, you can claim 80 cents for each hour you worked from home so long as you meet the following eligibility requirements:
You are working from home to fulfil your employment duties or to run your business during the period from 1 March 2020 to 31 December 2020
You are incurring additional home office running expenses as a result of working from home.
You can’t claim a deduction for items provided by your employer or if you have been reimbursed for the expense.
Remember, this method is temporary and can only be used to calculate your working from home deduction between:
1 March to 30 June 2020 in the 2019–20 income year
1 July and 31 December 2020 in the 2020–21 income year.
All you need to do is check that you meet the eligibility requirements and record the hours you worked from home. When you complete your tax return, you can multiply the number of hours by $0.80 to work out your deduction.