Nick Hall

What Can I Claim on Tax? A Guide to Working From Home Tax Deductions | Man of Many

What you can and can’t claim has always been a bit of a mystery to Aussies, however, in a year as disrupted as this, the confusion is compounded. We got Dixon to spell out the key things you should be aware of this End of Financial Year, including the lesser-known costs you should be claiming. According to H&R Block CEO, there is a wide range of expenses you can claim when working from home, including:

What Can I Claim if I Work From Home?

Over the last few years, the ATO has made a number of changes to the way we complete our tax returns. With the confines of work becoming more and more blurred, getting a handle on the updates isn’t easy. “The key personal tax change was the extension of the Low and Middle Income Tax Offset for another year, to 30 June 2022,” Dixon said. “This measure ensures that 10.2 million low and middle-income Australians will not see a tax hike of up to $1,080 next year. Also welcome are a couple of the business tax measures. The extension of full expensing and the loss carry-back have been extended for a further year, to 30 June 2023.”

Changes to Tax in 2021

While you may think you know what you’re doing, even the way that we make a claim has changed this year, Dixon explains. “You can claim the ATO’s existing flat-rate allowance for working from home of 52 cents per hour. This covers the extra costs of heating, cooling, lighting and the decline in value of furniture. All you need to do to claim this is to keep a diary – note the time you start work each day, the time you finish work each day and any breaks. You can then claim 52 cents per hour for each working hour,” he says.

How Do I Make a Claim?

We hear it often, but just what does maximising your tax claim actually look like? According to Dixon, there are a number of small steps you can take to improve your financial standing, making it easier to generate greater returns when it comes time to file your forms.

How to Maximise Your Claim

Take it from us, the last thing you want is the ATO auditors knocking at your door, so it pays to know what you can’t claim as well. Unsurprisingly, you can’t claim for the cost of tea, coffee, milk and other household items your employer might have paid for at work. You also can’t claim costs associated with home-schooling your children, like buying them iPads and desks.

Is There Anything I Can’t Claim?

With that in mind, it’s easy to fall into the same traps. Here are the common mistakes Aussies make when trying to claim their tax

Common Claim Mistakes

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