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Work Related Tax Deductions due to COVID-19
The ATO has continued with its shortcut method for work-related tax deductions as people continue working from home due to COVID in FY20-21 . The method allows people to claim 80 cents per hour for all their running expenses , rather than needing to calculate costs for specific running expenses . The change covers this entire financial year and may be extended by the ATO into FY21-22 depending on the ongoing COVID-19 situation . Bear in mind that while the 80 cents-an-hour “ shortcut ” method is quickest – it may not deliver the biggest deductions . More information is available on the
ATO website .
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Claim as many work-related expenses as you can
Many expenses that you accumulate can be claimed in your tax return . However , many cannot , and incorrectly claiming these may result in a penalty from the ATO . Here ’ s a few examples to remember :
• Laptops and mobile phones : Did you purchase a new webcam , lighting or other equipment to help improve the quality of your conference calls while working from home ? In 2021 you can claim these as a work expense too . Just remember that if you have a device you use for both work and personal use , you ’ re only entitled to claim the portion that you use for work .
• Other tools and work-specific clothing : If the item is needed to perform your job make sure you include these in your return . Whether this be tradie tools , items needed for selfprotection or safety when doing your job , or compulsory uniforms you can include these if you have written or digital evidence of purchase .
• Courses and conferences : Self-education expenses , such as courses and certificates , need to be directly related to your profession and linked to helping you get a promotion or a pay rise . Think of the things you have completed with AfMA and other industry groups you may be a part of when lodging your return .
6 ISSUE 29 JUNE 2021 / WWW . AFMA . ORG . AU