Shortcut method

Eligibility to claim

The shortcut method (80c per work hour) is temporary, you can only use it to work out your deduction for work from home expenses:

• between 1 March 2020 to 30 June 2020 in the 2019–20 income year
• for the 2020–21 and 2021–22 income years.

If you are working out your claim for working from home expenses for the current year, see Choosing a method to calculate your claim.

You can use the shortcut method if you:

• incur additional running expenses as a result of working from home
• have a record of the total number of hours you worked from home.

How it works

The temporary shortcut method simplifies how you calculate your deduction for working from home expenses.

Using this method, you:

• can claim 80 cents per hour for each hour you work from home
• can't claim any other expenses for working from home, even if you bought new equipment.

The shortcut method covers all your working from home expenses, such as:

• phone and data expenses
• internet expenses
• the decline in value of equipment and furniture
• electricity and gas (energy expenses) for heating, cooling and lighting.

The shortcut method includes decline in value of all items. If you choose to use this method there is no requirement to separately calculate the decline in value of equipment or depreciating assets or any other working from home expense.

However, as you may need to use a different method to work out your working from home deduction in later years it's important to keep the:

• receipts for depreciating assets or equipment you use when working from home
• records of how you calculated your work-related use of the asset
• your decline in value calculations.

Calculate your deduction

Use our home office shortcut method calculator to help work out your deduction.

Home office shortcut method calculator

Record keeping for the shortcut method

You must have a record of the total hours you worked from home – for example, a timesheet, roster or diary.

Completing your tax return

Once you calculate your deduction, enter the amount at Other work-related expenses in your tax return.

Include in the description field COVID-19 hourly rate if lodging through myTax.