The ATO has updated Practical Compliance Guideline PCG 2020/3 to extend the availability of the "shortcut" 80 cents per hour rate for claiming work from home running expenses. This shortcut deduction rate will now be available until at least 31 December 2020 (it was previously extended to 30 September 2020).
As amended, PCG 2020/3 now allows eligible taxpayers to claim additional running expenses incurred between 1 March 2020 and 31 December 2020 at the rate of 80 cents per work hour, provided they keep a record of the number of hours worked from home. Taxpayers eligible to use the shortcut rate are employees and business owners who:
- work from home to fulfil their employment duties or to run their business during the period from 1 March 2020 to 31 December 2020; and
- incur additional running expenses that are deductible under s 8-1 or Div 40 of the Income Tax Assessment Act 1997 (ITAA 1997).