Calls to keep working from home tax deduction as living costs rise

However, the deduction is set to end this financial year.

When it ends, people with dedicated home offices can claim depreciation on things like computers.

But for anyone working from a kitchen table or bedroom, the tax deduction will no longer apply.

“If you’re an employee, the range of deductions will be much less,” Michael Croker from Chartered Accountants Australia said.

Despite the pandemic looking as if it is coming to an end, many people are continuing to work from home either a couple of days a week or permanently.

“Many people will be working from home for the rest of their lives, so let’s get this sorted with some clear working from home guidelines,” Mr Croker said.

Additionally, living costs are continuing to rise, meaning working from home can become more expensive.

“Costs in general are just rising, housing costs, fuel costs,” Mr Wong said.

“To add the additional costs in electricity really hurts.”

This has sparked chartered accountants and employees to call on the government to make the COVID-19 deduction permanent.

“It gives you much more flexibility because you don’t have to have a dedicated study or fixed work area to be able to claim that deduction,” business owner Ben Wong said.

“So it gives you the choice of either using the current methods or the new 80-cent method and it just provides much more flexibility.”