The simple trick to getting back an extra $1,000 back in your tax return if you work from home

Australians working from home can get an extra $1,100 back in tax by manually adding up their electricity expenses and measuring their study or dining room.

Individuals have until October 31 to lodge their tax returns online but lockdowns in Sydney and Melbourne have created some confusion, as more people are kept away from the office. 

Since the pandemic began in March 2020, the tax office has allowed white collar professionals to claim a flat 80 cents an hour rate on their expenses.

The shortcut was extended to the last financial year, which means Australians can use their method for every hour they worked up to June 30.

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Tax agent H&R Block calculated someone who had worked at home all year would typically get back $1,500 on their tax return if they used this shortcut method which caps mobile phone and internet claims.

But the group’s director of tax communications Mark Chapman said a professional stood to get an average $2,600 refund if they opted for the lower 52 cents an hour rate and manually added up all their working from home expenses.

‘This covers the extra costs of heating, cooling, lighting and the decline in value of furniture,’ he told Daily Mail Australia.

‘All you need to do to claim this is to keep a diary – note the time you start work each day, the time you finish work each day and any breaks. 

‘You can then claim 52 cents per hour for each working hour.’

Mr Chapman said someone submitting a heating or electricity expenses claim also needed to measure the size of their study or work area and calculate that as a percentage of their house or unit floor space.

‘You’ll need to keep a diary of your work from home hours – for a typical 12 week period – and you’ll also need to work out the amount of your home by floor area that you’re using as your work space,’ he said.

‘From this, you can then work out the work-related proportion of your household expenses and apply this percentage to the actual amount you spend on electricity, gas, water, phone and internet. 

‘You’ll also need to keep all the original bills to prove your claim.’

H&R Block said someone submitting a home expenses claim also needed to measure the size of their study or work area and calculate that as a percentage of their house or unit floor space, as part of a heating or air conditioning bill claim (pictured is a Zoom zone in a house design for Bellriver Homes in the Hunter Valley) 

Those who wish to visit an accountant are able to visit an office in locked down areas of Sydney and regional New South Wales, with the state government classifying them as a professional service instead of non-essential retail.

H&R Block, however, is encouraging customers to organise a phone appointment, with Zoom consultations unavailable.

The tax agent’s offices are closed in Melbourne and all of regional Victoria. 

Individuals have until October 31 to lodge their tax return online or they face a $222 fine, which increases by $222 a day for 28 days to a maximum of $1,110.

Those who need more time can register with a tax agent by Halloween, with accountants having until May 15, 2022 to lodge a return on someone else’s behalf. 

The Australian Taxation Office is this year cracking down on 600,000 cryptocurrency investors who think their investments are untraceable. 

During the past year, Bitcoin has climbed from $15,000 to $63,000 which means capital gains need to be declared, like shares or exchange-trade funds – an index tied to basket of shares.