Quick Guide to Tax Return Claims for Remote Workers

Toongabbie tax accountant

Working from home has gained more significance after businesses modified work models during those lockdowns. It brought certain benefits such as a comfortable workplace and less time required to wake up and start working. However, it added certain costs concerning infrastructure, power, and internet usage among others without a rise in wages. Thus, employees working from home can submit their claims for certain extra expenses they incurred due to set their own workplace.

To simplify taxation, home expenses are divided into two categories for declaration and claims as discussed below.

1. Occupancy Expenses for a Home Office

When you use a part of your home for office work, the related costs are referred to as occupancy expenses. And if the home is your primary workplace, you can claim the expenses you incur while doing your job from there. You need to evaluate the portion of the home dedicated to work to calculate the expenses. Some inclusions on the list include costs of a mortgage, house insurance, rent, phone, internet, office equipment, computer, and land rates.

2. Home Running Expenses

For part-time workers, home running expenses are what you should claim instead of occupancy costs. It includes charges for business calls, space’s power consumption, depreciation of equipment, furniture, & fittings, as well as repairing and cleaning costs. This doesn’t cover costs for personal phone, computer, stationery, and equipment.

However, you need to clear ATO’s interest deductibility test before making any claim. Moreover, the area shouldn’t be used for private or domestic purposes, should be regularly used for client visits and business, should be identified as a workspace clearly. For better knowledge and accurate claims, you can discuss details with a professional tax accountant in Toongabbie.

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