The amount of tax you can claim while working from home in Australia has changed - here's how

Australians now working at home due to the impacts of coronavirus could claim 80 cents per hour back when they do their tax return. Here's how it works.

Stephanie Barr is working from her Melbourne home.

Brand and marketing strategist Stephanie Barr is now working from her Melbourne home. Source: Supplied

Although some Australians have lost their jobs due to the impact of coronavirus on the economy, for others the daily grind has continued at home,

Melbourne-based brand and marketing strategist Stephanie Barr is now working at home full-time. 

"Having worked at home previously, I do have a dedicated office room," she told SBS News.

"And now that I'm working from home full-time, and my partner also occasionally needs to use a home office, it does make it a bit easier that we can both deduct a portion for the home office, potentially," she said.

What can you claim back?

Millions of employees will now be able to claim the 80 cents per hour tax deduction for each hour of work done at home during the COVID-19 crisis, but the old method will still be available. 

Taxpayers will be able to claim a work-related portion of all running expenses and calculate that amount on a reasonable basis.
The 80 cents per hour rate will apply to extra costs, but it will also be possible to claim under the previous fixed rate method of 52 cents an hour instead for heating, cooling, lighting and a decline in office furniture value.

The tax office's new shortcut method will also include internet costs, cleaning bills, stationery, phone costs and other expenses.

What dates do the new rules cover?

Australian Tax Office assistant commissioner Karen Foat said the shortcut approach can apply from 1 March 2020 until the end of the financial year.

"We also just want it to be simple for people," she said.
"So it's not really, for us, about the number of people working from home, it is a very unprecedented situation that the nation finds itself in so we're just trying to respond to that." 

Assistant Treasurer Michael Sukkar has called the tax rules a "temporary arrangement" but Ms Foat hasn't ruled out an extension to the tax change into the next financial year if the federal government continues to encourage everyone to work at home to curb the spread of COVID-19.

What can't you claim?

The tax office said employees can't claim a deduction for items that their workplace has provided or claim items for which they have already been reimbursed.
"So you can't claim things like coffee, tea, even if your employer used to provide it when you were in the workplace, you can't claim for that, and you also can't claim for the cost of your children's education," Ms Foat said.

"You can't claim a tax deduction for those things because they are not related to earning your income."

Could the new rules become permanent?

Accounting organisation CPA Australia said it wants the simpler shortcut to become a permanent option.

Its general manager of external affairs Paul Drum said before March workers based at home will still need to use the 52 cents an hour rate method.

"This is complicated and in some ways, it is micro-managing the expenses, so we think just being able to claim by number of hours working ... 80 cents an hour is a good cut-through of some of those very old, cumbersome rules - although the old rules are not replaced." 

"Certainly from 1 July last year right up until 1 March this year, you have to use the old rules anyway," he said.
But, he said, many people were working from home for the first time, therefore, the new, simpler measures were appropriate for them.

"If you look at it from a dollar perspective, if someone is working 40 hours a week at 80 cents an hour, it's only $32 a week, or it'll be a claim of about $512 per person between now and the end of this financial year as a deduction, it's not a lot of money," he said.

Ms Barr said it appeared the updated rules provided more flexibility but it could be tricky for people like her, who already worked from a home office.

"I guess for a lot of people who haven't been previously working from home it may be more straightforward, however, if you have been working from home previously, I could see how that could get a bit confusing."

"At the end of the day, it's more money in your pocket, so hopefully it all works out better for everyone in the long run."

How do I make a claim?

Anyone working from home should be keeping records of expenses incurred.

Applicants will be able to lodge their own tax returns online from 1 July until October but if using the new approach, must note 'COVID-hourly rate'. 

More information can be found at

People in Australia must stay at least 1.5 metres away from others and gatherings are limited to two people unless you are with your family or household.

If you believe you may have contracted the virus, call your doctor (don’t visit) or contact the national Coronavirus Health Information Hotline on 1800 020 080. If you are struggling to breathe or experiencing a medical emergency, call 000.

SBS is committed to informing Australia’s diverse communities about the latest COVID-19 developments. News and information is available in 63 languages at 


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5 min read
Published 10 April 2020 1:37pm
By Stephanie Corsetti



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