Maximize your tax refund using the correct home office running expense.

The COVID19 is rampaging across Victoria, with the three-digit number hovering over many Melbourinian, many sleepless nights.

At EndureGo Tax, we like to extend our greatest well wishes to those being locked down in Melbourne, and we would wish everyone to be safe and well. We will also like to extend a no question ask a 30% discount on all tax returns or tax-related services for the people in Melbourne.

That would include individual tax return, company tax return, business tax returns, sole trader tax return. As long as you show us the proof of the Melbourne address, we will honour the 30% discount. We will use contactless tax return meaning we will digitally capture all of the information, communicate to you via phone or email.

Once we finished the tax return, we will present and explain the tax return to you via a similar app to zoom in; then we will prepare the tax return. Hence you can sign the return digitally.

In the COVID19 tax return, it is essential to pay emphasis to one key important deductible item, that is working from home office running expense.

After the lockdown in March 2020, ATO has granted a higher flat fee per hour for home office running expense, which is at the 80 cents per hour, this would apply from 1 March 2020 to 30 September 2020. However, if you use this method, you can not claim other expenses from working from home, which includes internet expense, phone expense, depreciation of computer or other plant and equipment, electricity, gas and heating expenses. To use this method, you do not need a dedicated working area, but you need to maintain a detailed working hour timesheet, showing how many hours you work, and must exclude the old-fashioned “toilet break”.

If you don’t like to use this method, you can use the 52 cents per hour or the actual expense method, and you can choose the one that generates the highest number.
To use the 52 cents per hour, you need to have a timesheet to record the time work from home for the first four weeks; then you can pro-rata to the whole year; also you need to have a dedicated working area. If you use this method, you still can claim phone, internet expenses and depreciation of computer expense.

If you feel the actual expense would give you a higher number to maximize the tax refund, then you can choose to use actual expense. However, to use the actual cost, it is essential to have a dedicated working area to work, else you can only claim minimum running expense. To use this method, you need the receipts, for example, electricity, gas, computer, phone, internet, etc., and you need to pro-rata the room size to the total building size.

As one of the most trusted and professional accounting firms and tax agents in Ashfield Sydney and Adelaide as viewed by many of our clients, we are here to help you. Please give us a call at 0410829900, or drop us an email at