Work from Home changes

Work from Home changes effective 01st March so now in operation

The Australian Taxation Office (ATO) has issued new guidelines to help you in making a claim for running expenses using the fixed cost method, while working from home from 1 July 2022 for relevant to current financial year 2022/23.

Under this guidance, the ATO will allow you to make a claim of 67 cents per hour for time spent working from home. This claim is a simplified method which includes expenses for:

• energy expenses (electricity and/or gas) for lighting, heating/cooling and electronic items used while working from home

• internet expenses

• mobile and/or home telephone expenses, and

• stationery and computer consumables.

This amount is different from the previous couple of years where an amount of 80 cents per hour was available if you were required to work from home due to COVID-19.

However, under the revised fixed-rate method, a separate claim can now made for depreciation and repairs and maintenance on furniture and equipment.

In order to make this claim, you will need to keep a diary of the days you work from home. This can be backed up by evidence such as your timesheet or a roster.

Of course, those seeking actual cost method claim, you would need to establish evidence of your workings for claiming expenses in relation to running cost of your home office, receipts for any furniture, equipment and apportionment of this between private and work use based on diary evidence. You can maintain a 4-week diary as evidence of your apportionment of work-related costs for internet related expenses and rules are different when home plans are under a bundle service. ATO has provided guidance under PS LA 2001/6 on the claim calculating Actual Cost method.

If you require any more information about calculating this deduction, please let us know and we will be happy to assist you further.

Source: www.ato.gov.au and cch ifirm (https://www.wolterskluwer.com)