The Australian Taxation Office (ATO) has refreshed the way that taxpayers claim deductions for costs incurred when working from home.
Whilst these changes take effect from March 1st 2023 they will be effective from July 1st 2022.
Key changes between the previous and revised fixed rate are:
Revised fixed-rate method
The revised fixed-rate method apportions the following additional running expenses you incur on a fair and reasonable basis by using a fixed rate of 67c per hour for each hour you worked from home during the income year:
The rate per hour calculates the total of your deductible expenses for energy, internet, mobile and home phone, and stationery and computer consumables for the income year.
This means you cannot claim an additional separate deduction for any of these expenses.
“Australians will need to keep an ongoing diary for each day of the year they work from home from March onwards. A four-week diary representative of the year isn’t going to cut it. They also need to keep some records about their expenses incurred while working from home, such as copies of utility bills.
“Start keeping those diaries now.”
ATOdeductionsTaxworking from home