Working from home? Don’t forget these tax deduction facts
It’s rolled around far too quickly, but tax time is almost upon us once again. Like last year, you might have extra questions if you’ve been working from home or have taken up a side hustle over the last 12 months of COVID-induced workplace weirdness.
So you can add a solid tax return to your savings, here’s a little reminder about some of the important things to remember when lodging your claims.
The ‘shortcut method’ is still available if you’re WFH
The Australian Taxation Office (ATO) is reminding everyone that you can still claim working from home expenses if you’ve continued your daily work routine from your home office.
ATO Assistant Commissioner, Tim Loh says that even though some Aussies are shifting back to work in office environments, many companies or employees have opted to continue working from home one or multiple days a week.
He says the ‘shortcut method’ – where you can claim an 80-cent-per-hour tax deduction when working from home – is available again this financial year.
“The only proof you need is a record of the number of hours you’ve worked from home, such as a timesheet,” Loh said.
As was the case in 2020, this is a bump-up from the standard 52-cent hourly rate, which considers heating, cooling, lighting and furniture depreciation when WFH.
But if you have a knack with careful accounting, you can still use the diary and running expenses method. This provides a more detailed overview of separate work-related expenses and could provide better-value tax deductions than the shortcut method in some cases.
“I would encourage you to do your research and keep good records. Keeping track of each individual expense and calculating the work-related use of each one can be fiddly, so be organised,” Loh said.
Things you can’t claim on your tax return when working from home
While there are plenty of surprising things you can claim on tax, there are a few major things that aren’t tax deductible. This includes:
Personal expenses that might normally be supplied in an office. This includes things like coffee, tea and toilet paper. They might be essential, but since they aren’t directly related to you earning an income you can’t claim these items as deductions.
Large up-front expenses. If you’re looking to make a deduction on something like a computer or a fancy new desk set-up that costs more than $300 (either in total or as a single item) you can’t claim this immediately. Instead, you’ll need to spread the depreciation of the equipment out over a number of years.
Occupancy expenses such as rent, home loan repayments or home insurance. This is because working from home doesn’t qualify your house as a place of business for tax purposes, which would be the requirement for these kinds of claims.
Anything an employer has supplied or reimbursed you for. If your boss has sent you home with a laptop and desk chair, you can’t go claiming depreciation on these items as they don’t belong to you. Similarly, if you spend money on a work trip or to buy equipment and your workplace has repaid you the cost, you can’t add it to your list of tax deductions.
If you’re looking for a place to store your tax-time bonus, check out the high interest savings accounts below.
Compare high interest savings accounts - last updated 19 April 2024
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Mozo experts choice awards won:
- Kick Start Savings - 2024
High Interest Savings Account
5.75% p.a. (for $0 to $250,001)
4.40% p.a.(for $0 to $250,001)
Yes up to $250,000
Bonus rate for the first 4 months from account opening
Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.
CompareCompareHigh Interest Savings Account
Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.
- Maximum rate
- 5.75% p.a. (for $0 to $250,001)
- standard interest rate
- 4.40% p.a.(for $0 to $250,001)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 4 months from account opening, reverting to standard variable rate. Rate shown is for Personal customers and is subject to change. Different rates apply to Business/SMSF customers.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the Rabobank High Interest Savings Account
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Mozo experts choice awards won:
- High Interest Savings - 2024
Reward Saver
5.25% p.a. (for $0 to $100,000)
0.30% p.a.(for $0 and over)
Yes up to $250,000
Earn a high interest bonus rate if you hold an eligible transaction account and meet the bonus rate conditions (T&Cs apply). Only requires $1 to open. Free e-banking transactions. No monthly service fees to pay. Access your account via e-banking or the Bendigo Bank app. Not applicable to business customers.
CompareCompareReward Saver
Earn a high interest bonus rate if you hold an eligible transaction account and meet the bonus rate conditions (T&Cs apply). Only requires $1 to open. Free e-banking transactions. No monthly service fees to pay. Access your account via e-banking or the Bendigo Bank app. Not applicable to business customers.
- Maximum rate
- 5.25% p.a. (for $0 to $100,000)
- standard interest rate
- 0.30% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Grow your balance (in addition to interest paid by Bendigo Bank) each month and must have linked Bendigo Everyday or Student Account to be eligible.
- Access
- BPay, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Branch access available for deposits only.
Read our Mozo Review to learn more about the Bendigo Bank Reward Saver
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Savings Account
5.35% p.a. (for $0 to $250,000)
4.75% p.a.(for $0 to $1,000,000)
Yes up to $250,000
Bonus variable rate is available for the first four months.
Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.
CompareCompareSavings Account
Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.
- Maximum rate
- 5.35% p.a. (for $0 to $250,000)
- standard interest rate
- 4.75% p.a.(for $0 to $1,000,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus variable rate is available for the first four months.
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must have a Macquarie Transaction Account to link with.
Read our Mozo Review to learn more about the Macquarie Savings Account
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High Interest Save Account
5.10% p.a. (for $0 to $250,000)
0.10% p.a.(for $0 and over)
Yes up to $250,000
Deposit at least $200 to either Spend, Bills or Save account from an external source each month.
No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.
CompareCompareHigh Interest Save Account
No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.
- Maximum rate
- 5.10% p.a. (for $0 to $250,000)
- standard interest rate
- 0.10% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Deposit at least $200 to either Spend, Bills or Save account from an external source each month.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Account can only be opened through iOS or Android app, but may be accessed through internet banking.
Read our Mozo Review to learn more about the ubank High Interest Save Account
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