Business Income tax Taxation

Reduce your tax bill before 30 June 2020

Tax planning 2020

The end of the 2020 Financial Year is upon us!

Can you reduce tax payable for the 2020 financial year?

With just 20 days to go, there may be a few last minute actions you can take to assist with tax minimisation.

Please get in touch with us to discuss your tax planning, if you haven’t already done so.

Time is ticking, so call Brad or Rick on (02) 8814 5677

Accounting Income tax

Covid-19 & working from home: What expenses can you claim?

Covid-19 is changing so much in our lives.

A lot of you are now working from home, when you weren’t previously.

A logical question then becomes: What expenses can I claim, now that I’m working from home?

We’ve got you covered…

Home, Office

Calculating running expenses

There are three ways you can choose to calculate your additional running expenses:

  1. shortcut method – described below
  2. fixed rate method
  3. actual cost method

For more information on how to calculate and claim a deductions under methods 2 & 3, see Home office expenses  or call us on (02) 8814 5677.


Shortcut method

You can claim a deduction of 80 cents for each hour you work from home, due to COVID-19, as long as you are:

  • working from home to fulfil your employment duties and not just carrying out minimal tasks such as occasionally checking emails or taking calls,
  • incurring additional deductible running expenses as a result of working from home.

You do not have to have a separate or dedicated area of your home set aside for working, such as a private study.

The shortcut method rate covers all deductible running expenses, including:

  • electricity for lighting, cooling or heating and running electronic items used for work (for example your computer), and gas heating expenses
  • the decline in value and repair of capital items, such as home office furniture and furnishings
  • cleaning expenses
  • your phone costs, including the decline in value of the handset
  • your internet costs
  • computer consumables, such as printer ink
  • stationery
  • the decline in value of a computer, laptop or similar device.

You do not have to incur all of these expenses, but you must have incurred additional expenses in some of those categories as a result of working from home due to COVID-19.


If you use the shortcut method to claim a deduction for your additional running expenses, you cannot claim a further deduction for any of the expenses listed above.

You must keep a record of the number of hours you have worked from home as a result of COVID-19. Examples are timesheets, diary notes or rosters.


If you use the shortcut method to claim a deduction, please remember to let us know when its time to prepare your 2019-20 tax return as we must include the note ‘COVID-hourly rate’ in your tax return.