--- title: "working from home tax deductions: ATO announces Short Cut method" description: This article describes the range of working from home tax deductions that employees can claim in preparation for your 2019/20 tax return. image: https://insights.wlm.com.au/hubfs/1200%20x%20628%20px%20Facebook%2c%20Twitter.jpg --- [![WLM_Logo_RGB_Orn50](https://insights.wlm.com.au/hs-fs/hubfs/WLM_Logo_RGB_Orn50.png?width=521&height=169&name=WLM_Logo_RGB_Orn50.png "WLM_Logo_RGB_Orn50")](http://wlm.com.au/) - [About](https://www.wlm.com.au/about/) - [Services](https://www.wlm.com.au/services/) - [Tax & Compliance](https://www.wlm.com.au/services/tax-and-compliance/) - [Strategy & Advice](https://www.wlm.com.au/services/strategy-and-advice/) - [Clients](https://www.wlm.com.au/clients/) - [Construction & Trades](https://www.wlm.com.au/clients/construction/) - [Family Business](https://www.wlm.com.au/clients/family-business/) - [Insurance & Financial Services](https://www.wlm.com.au/clients/insurance-and-financial-services/) - [Renewable Energy & Environment](https://www.wlm.com.au/clients/renewable-energy-and-environment/) - [Service-based & Other Business](https://www.wlm.com.au/clients/service-based-and-other-business/) - [Insights & Case Studies](https://insights.wlm.com.au/blog) - [Blog](https://insights.wlm.com.au/blog) - [Buying a property with a business partner](https://explore.wlm.com.au/buying_a_property_with_a_business_partner_download) - [How to minimise tax & risk with business structure](https://explore.wlm.com.au/business-structure-whitepaper-download) - [Contact](https://www.wlm.com.au/contact/) [Login](https://clientlogin-us2.karbonhq.com/4Frhz6cPZq6r) - [About](https://www.wlm.com.au/about/) - [Services](https://www.wlm.com.au/services/) - [Tax & Compliance](https://www.wlm.com.au/services/tax-and-compliance/) - [Strategy & Advice](https://www.wlm.com.au/services/strategy-and-advice/) - [Clients](https://www.wlm.com.au/clients/) - [Construction & Trades](https://www.wlm.com.au/clients/construction/) - [Family Business](https://www.wlm.com.au/clients/family-business/) - [Insurance & Financial Services](https://www.wlm.com.au/clients/insurance-and-financial-services/) - [Renewable Energy & Environment](https://www.wlm.com.au/clients/renewable-energy-and-environment/) - [Service-based & Other Business](https://www.wlm.com.au/clients/service-based-and-other-business/) - [Insights & Case Studies](https://insights.wlm.com.au/blog) - [Blog](https://insights.wlm.com.au/blog) - [Buying a property with a business partner](https://explore.wlm.com.au/buying_a_property_with_a_business_partner_download) - [How to minimise tax & risk with business structure](https://explore.wlm.com.au/business-structure-whitepaper-download) - [Contact](https://www.wlm.com.au/contact/) # News, views and more ![Dan McGrath](https://insights.wlm.com.au/blog/Dan%20McGrath) **Dan McGrath** 15 April 2020 — 2 min read ### Share [mailto:?subject=ATO%20announces%20Short%20Cut%20method%20to%20claim%20working-from-home%20deductions&body=https://insights.wlm.com.au/blog/ato-announces-a-new-short-cut-method-to-claim-working-from-home-deductions](mailto:?subject=ATO%20announces%20Short%20Cut%20method%20to%20claim%20working-from-home%20deductions&body=https://insights.wlm.com.au/blog/ato-announces-a-new-short-cut-method-to-claim-working-from-home-deductions) [mailto:?subject=ATO%20announces%20Short%20Cut%20method%20to%20claim%20working-from-home%20deductions&body=https://insights.wlm.com.au/blog/ato-announces-a-new-short-cut-method-to-claim-working-from-home-deductions](mailto:?subject=ATO%20announces%20Short%20Cut%20method%20to%20claim%20working-from-home%20deductions&body=https://insights.wlm.com.au/blog/ato-announces-a-new-short-cut-method-to-claim-working-from-home-deductions) ![WLM Financial ATO Working From Home Allowance](https://insights.wlm.com.au/hubfs/1200%20x%20628%20px%20Facebook%2c%20Twitter.jpg) ## ATO announces Short Cut method to claim working-from-home deductions This article describes the range of expenses that employees can claim while working from home. The information provided is designed to help you track working-from-home expenses in preparation for your 2019/20 tax return. As a simplified alternative, the ATO is allowing a flat-rate short cut claim. This method effectively bundles claimable items into a single notional amount of 80 cents per hour worked from home. To claim a deduction for working from home, all of the following must apply: - You must have spent the money. - The expense must be directly related to earning your income. - You must have a record to prove it. ### **Expenses you can claim** If you work from home, you will be able to claim a deduction for the additional running expenses you incur. These include: - Electricity expenses associated with heating, cooling and lighting the area from which you are working and running items you are using for work - Cleaning costs for a dedicated work area - Phone and internet expenses - Computer consumables (for example, printer paper and ink) and stationery - Home office equipment, including computers, printers, phones, furniture and furnishings - you can claim either: ### **Expenses you cannot claim** If you are working from home only due to COVID-19, you: - Cannot claim occupancy expenses such as mortgage interest, rent and rates - Cannot claim the cost of coffee, tea, milk and other general household items your employer may otherwise have provided you with at work. You cannot claim a deduction for items supplied by your employer or expenses that have been reimbursed by your employer. ### **Calculating expenses** There are three ways you can choose to calculate your additional running expenses: - Shortcut method ─ claim a rate of 80 cents per work hour for all additional running expenses - Fixed-rate method ─ claim all of these: - Actual cost method ─ claim the actual work-related portion of all your running expenses, which you need to calculate on a reasonable basis. ### WLM can help [If you'd like help](https://www.wlm.com.au/) with understanding your obligations or any further information  on working from home tax deductions, [please contact us today.](https://www.wlm.com.au/contact/)   [![Your free eBook guide to business structuring](https://hubspot-no-cache-ap1-prod.s3.amazonaws.com/cta/default/6037207/e520877a-d8f2-4174-849c-3565a233feff.png)](https://hubspot-cta-redirect-ap1-prod.s3.amazonaws.com/cta/redirect/6037207/e520877a-d8f2-4174-849c-3565a233feff) ##### Make a comment [Previous](https://insights.wlm.com.au/blog/super-guarantee-amnesty-deadline-approaching) [Next](https://insights.wlm.com.au/blog/1500-jobkeeper-subsidy-to-keep-staff-employed) ## Wealth matters. 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