Blog

Employees working from home may be able to claim a deduction for expenses incurred relating to their work. To guide you the ATO provides information on their website, https://www.ato.gov.au/

Confused?!

Have questions, contact us, at Blackburn Accounting, we are your taxation specialist.

What's Claimable- What's Not!

Firstly,  to claim your working from home expenses you must be eligible, i.e.:

• be working from home to fulfil your employment duties, not just carrying out minimal tasks like, occasionally taking calls or checking emails.
• incur additional expenses as a result of working from home

You can claim a deduction for the additional running expenses you have as a result of working from home.

These expenses relate to the use of facilities within your home, such as:

• Internet expenses
• phone expenses
• electricity expenses for lighting, heating and cooling

In limited circumstances, you may be entitled to claim occupancy expenses. See details at the ATO website.

Expenses you can't claim:

If you are an employee working from home, you can't claim a deduction for the following expenses;

• coffee, tea, milk and other general household items even if your employer provides these at work
• costs that relate to your children's education such as equipment you buy – e.g. iPads and desks, subscriptions for online learning
• items your employer provides – such as a laptop or a phone
• any items where your employer pays for or reimburses you for the expense

 Working from Home - more!

Note: if your Employer pays you an allowance to cover your working-from-home expenses, you must include it as income in your tax return.

General - other deductions:

• Education: for self-education and study expenses if the education relates to your employment activities.
• Transport and travel: You can claim transport and travel expenses you incur when you travel in the course of performing your work duties.
• Clothing, laundry and dry cleaning expenses: Costs you can claim when you buy, repair or launder occupation-specific, protective clothing and distinctive uniforms.
• You can claim a deduction for the cost of tools, equipment and other assets and use to help earn your employment income.

• For other work-related deductions, check the ATO guidelines.

 If you are a Business owner or sole trader and your home is your principal place of business check the ATO website deductions for home-based business expenses

Note: Record Keeping

For Taxation reporting purposes, it is important to keep records and to know what you need to keep and for how long. These differ.

Records include,

• payments received
• expenses
• assets

Don't let tax time test your patience and knowledge.  We are professionals, contact us today,

Blackburn Accounting, we will get the job done to meet all legislative requirements.