Work from Home Deduction
The Australian government has recently scrapped the shortcut method for claiming work-from-home deductions.
This method, which was introduced in the 2020-2021 financial year, allowed employees to claim a flat rate of 80 cents per hour for expenses incurred while working from home due to the COVID-19 pandemic.
However, the government has now announced that this method will no longer be available for the 2021-2022 financial year and beyond.
Instead, employees will be required to claim their expenses using the existing “actual cost” method or the “fixed rate method” which involves keeping records of expenses such as electricity and internet costs, and claiming them as tax deductions.
Not sure how this will affect you? Talk to our Square Penny team today on 1300 472 412 to learn more.
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