For the 2022-23 income year and onwards the record keeping requirements and methods for calculating work from home deductions have changed.
For the 2022-23 income year and onwards the methods for calculating work from home deductions include:
- revised fixed rate method
- actual cost method.
While there have been no changes to the actual cost method, the fixed rate method has been revised to better reflect current work from home arrangements.
The revised fixed rate method:
- has increased from 52 cents to 67 cents per hour worked from home
- removes the requirement to have a dedicated home office area
- works out the claim for
o phone and internet usage
o electricity and gas
o stationary
o computer and consumables
- allows for the work-related portion of the decline in value of depreciable assets to be claimed separately.
The revised fixed rate method can also be used by businesses that operate partially or fully from home to claim work from home deductions.
If you plan to use the revised fixed rate method in your 2022-23 tax return, you need to have:
- from 1 July to 28 February a record which can be representative of the hours you worked from home
- from 1 March 2023 to 30 June 2023 a record of the total number of hours you worked from home, as well as evidence you paid for each of the expenses incurred that are covered by the fixed rate method (such as a phone or electricity bill). Any equipment bought to enable you to work from home will also require records.
Source: ATO
For more information or assistance please contact Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au.