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  • Shortcut method

    Use the temporary shortcut method to work out your working from home deduction between 1 March 2020 and 30 June 2022.

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    Changes to the work from home methods

    We are updating the methods available to calculate your working from home expenses for the 2022–23 income year.

    Make sure you have evidence to support your deduction claims.

    From 1 July 2022, you should keep:

    • records of all hours you work at home
    • receipts for all depreciating assets or equipment you use when you work at home
    • records of your personal and work-related use of assets.

    You can use the myDeductions tool in the ATO app to help keep track of your expenses.

    Eligibility

    This shortcut method is temporary, you can only use it to work out your deduction for work from home expenses:

    • between 1 March 2020 to 30 June 2020 in the 2019–20 income year
    • for the 2020–21 and 2021–22 income years.

    To continue to claim deductions for working from home expenses after 30 June 2022 you will need to use either the:

    You will need to meet the eligibility and record keeping requirements for the method you choose to use.

    You can use this method if you:

    • worked from home and incurred some additional running expenses as a result
    • have a record of the number of hours you worked from home.

    How it works

    The temporary shortcut method simplifies how you calculate your deduction for working from home expenses.

    Using this method, you:

    • can claim 80 cents per hour for each hour you work from home
    • can't claim any other expenses for working from home, even if you bought new equipment.

    The shortcut method covers all your working from home expenses, such as:

    • phone and data expenses
    • internet expenses
    • the decline in value of equipment and furniture
    • electricity and gas for heating, cooling and lighting.

    The shortcut method includes decline in value of all items. If you choose to use this method there is no requirement to separately calculate the decline in value of equipment or depreciating assets or any other working from home expense.

    However, as you may need to use a different method to work out your working from home deduction in later years it's important to keep the:

    • receipts for depreciating assets or equipment you use when working from home
    • records of how you calculated your work-related use of the asset
    • your decline in value calculations

    Record keeping for the shortcut method

    You must have a record of the hours you worked from home, for example, a timesheet, roster or diary.

    Calculate your work from home deduction

    Use our Home office expenses calculator to help work out your deduction.

    Completing your tax return

    Once you calculate your deduction, enter the amount at Other work-related expenses in your tax return. Include in the description COVID hourly rate.

    Last modified: 22 Aug 2022QC 66148