The tax office will receive a barrage of tax claims from July 1, as people experiencing financial stress try to get refunds as soon as possible.
Refunds may be higher this year, thanks to the new working-from-home deductions, and if you’ve lost work or income you may get a refund from the higher tax paid during the early part of the financial year.
The new deduction for people working from home is set at 80c an hour. You need to keep a record of hours worked but no further documentation, such as receipts.
Mark Chapman, H&R Block tax specialist, says that as a general rule people will get the highest deductions if they can claim actual costs such as phone, internet, heating, cleaning and depreciation. However, these are the hardest to work out so the 80c rule makes a great deal of sense.
“It isn’t necessarily going to give people the biggest refund, but it is easy to claim. You simply need to record all your working hours from home in a diary, but you don’t have to do anything beyond that. That then covers all your home-related expenses, including your mobile phone, internet, etc.”
However, if you have a large mobile phone or internet bill and other expenses, it may be worthwhile collating any receipts, credit card statements or proof of expenditure. “If you don’t have receipts you can’t make the claim,” he says.
Fight for every dollar
Adrian Raftery, principal at Mr. Taxman, recommends keeping receipts for all expenses incurred while running your home office.
“Keep a diary or a spreadsheet of the amount of time that you are using your home for work purposes,” he says. “Record a summary of the number of landline and mobile calls you make as well as the text messages that are work-related.
This story is from the June 2020 edition of Money Magazine Australia.
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This story is from the June 2020 edition of Money Magazine Australia.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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