I recently applied for a private ruling on behalf of one of our client’s whose work situation has changed substantially as a result of Covid-19.
Like a lot of our clients, she has been working from home predominantly and spent a minimal amount of time in her usual office location. On her behalf, we applied for a private ruling from the ATO to reassess her ability to claim her home office as her primary working venue.
We are very happy to report that we were successful in having the ruling determine that her home was classified as a “co-existing work location”.
Please find some details below and do not hesitate to contact us if you would like to ascertain your own situation regarding work related deductions/home based office
Question:
Are you able to claim your home to work travel in accordance with section 8-1 of the Income Tax
Assessment Act 1997 (ITAA 1997) as travelling between co-existing work locations including your home?
Answer:
Yes. You meet the requirements within Draft Taxation Ruling TR 2017/D6 Income tax and fringe benefits tax: when are deductions allowed for employees’ travel expenses and for your home office to be considered a co-existing work location?
Factors considered:
1. Your travel and preparation of documents at home has increased since COVID 19 restrictions have been implemented.
2. You travel your employer’s office location approximately one day every month.
3. You receive a travel and work-from-home allowances.
4. You have a dedicated area set up within your home as your home office.
5. You will be claiming a deduction for the actual cost of running your home office in your income tax return.
6. On occasion you perform the following duties at home before travelling to the other location and after arriving home from the other location you travelled to that day:
• Computer-based administrative duties including writing reports and documents,
• Compiling training presentations,
• Making and receiving telephone calls,
• Sending and receiving emails,
• Participating in video-based training sessions,
• Preparing, delivering and participating in training,
• Conversing with your employer’s customers/clients,
• Performing tasks that your employer charges the clients for accordingly.
Private rulings are specific in nature but as more people have been working from home and will be working from home in the foreseeable future, we recommend having a chat to us if any of the above factors apply to you.