Work-from-home employees will benefit from extended tax changes covering their expenses, but there are calls for a more permanent solution.
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Inland Revenue (IRD) has extended tax relief to employers who pay staff an allowance for working from home until 2023.
Employees can receive up to $20 a week, tax free, to cover any additional costs associated with working away from the office, such as power, internet usage or printing.
Any payments above this amount require evidence of expenses.
"The extension of tax relief for employers with employees working from home comes not a moment too soon, given the latest Covid lockdowns," Chartered Accountants NZ tax leader John Cuthbertson said.
"The latest lockdown shows that our new way of working is here to stay, and that a permanent working from home tax policy is needed."
He said a fix could be achieved, but it was taking a lot longer than anticipated because the policy team at IRD was preoccupied with more pressing matters.
"That policy fix could look a bit different and we'll need to take into account a number of other changes in terms of working for home and what the future of work may look like."
There is no requirement to connect working from home expenses to the Covid-19 lockdown, with tax relief applicable no matter the reason for working from home.
"Of course, employers wanting to reimburse staff for higher actual costs whilst working from home can do so, but they need to keep accurate, detailed records," Cuthbertson said.
