Tax Time 2021 is here and Home office expenses is one thing ATO will be looking at closely!

Work from home expenses under scrutiny & the perils of browsing Facebook

If you worked from home during lockdown and spent money on work related items that were not reimbursed by your business, you might be able to claim some of these expenses as a deduction – but not everything you purchase can be claimed.

The ATO has stated that it is looking very closely at work related deductions that are being claimed. If you are claiming your expenses, there are three methods you can use:

· An 80 cents per hour short cut method (you will need to have evidence of hours worked like a timesheet or diary)

· The 52 cents per hour method (which excludes phone, internet, or the decline in value of equipment which are all claimed separately), or

· The actual expenses method.

The ATO is particularly interested in those using the ‘actual expenses’ method. To be able to claim a work related expense, it needs to be directly related to the work you do and how you earn your income. The ATO has highlighted four ineli