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  • Keep records when working from home

    If your clients are continuing to work from home during the 2021–22 income year, remind them to keep a record of the hours they work from home and keep receipts for all items purchased.

    Encouraging your clients to keep appropriate records now will allow you to use the method that will give them the best outcome when calculating their working from home deduction in future years.

    Regardless of which method is used to calculate working from home expenses, the important thing for your clients is to continue to keep records of:

    • the hours they work from home
    • all receipts, including evidence of assets purchased as well as any other work-related items, like paper and ink.

    If your clients worked from home in 2020–21, they may be able to claim a deduction using one of three methods:

    • Temporary shortcut method – which is an all-inclusive rate of 80 cents per work hour. If they use the shortcut method, they can’t claim any other working from home expenses, including decline in value of office furniture and equipment.
    • Fixed rate method – which allows taxpayers to claim 52 cents per work hour instead of recording all their actual expenses for heating, cooling, lighting, cleaning and the decline in value of furniture. Clients must have a dedicated work area, like a home office, that they use when they work from home.
    • Actual cost method – this method allows taxpayers to claim the actual work-related portion of all their running expenses, which need to be calculated on a reasonable basis.

    Media: Tax Time 2021 - Working from home expenses
    https://tv.ato.gov.au/ato-tv/media?v=bi9or7odgzcwkdExternal Link (Duration: 01:05)

    For more information about calculating working from home deductions for this financial year, visit Working from home.

    Last modified: 20 Jul 2021QC 66454