The Australian Taxation Office (‘ATO’) has announced a temporary simplified short cut method to make it easier for individual taxpayers to claim deductions for additional running expenses incurred (e.g., additional heating, cooling and lighting costs), as a result of working from home due to the Coronavirus pandemic. Refer to the ATO’s Media Release of 7 April 2020. Based on the announcement, the ATO will allow individuals to claim a deduction…  Read more

Some employees may wonder whether a work related expense (or ‘WRE’) becomes deductible merely because their employer specifically requires the employee to incur the expense. Importantly, the ATO’s recent draft ruling on the deductibility of work-related expenses reiterates that an employer’s requirements do not determine the question of deductibility. Specifically, a number of examples contained in the draft ruling confirm that a work related expense may be deductible without an…  Read more