Listen to it here:
The Australian Taxation Office (ATO) has updated the process for claiming deductions for working from home expenses to reflect modern remote work arrangements.
Revised Fixed Rate Method
The revised fixed rate method, which applies from 1 July 2022, now includes phone, internet, and electricity expenses, Stationery, and computer consumables such as printer ink and paper. You can claim a fixed rate of 67 cents per hour that you work from home.
Separate Deductions
Taxpayers can no longer claim assets such as technology and office furniture under the revised fixed rate method. These expenses must be claimed separately.
Eligibility
To be eligible for working from home deductions, taxpayers must incur additional expenses as a result of working from home, and the expenses must be related to fulfilling their employment duties.
Record-Keeping
For the 2022-23 income year, transitional arrangements will allow taxpayers to provide a record of the total number of hours worked from home.
Non-Claimable Items
It is important to note that taxpayers cannot claim for general household items such as coffee, tea, and milk.
If you have any questions or would like more information, don’t hesitate to book an online appointment or contact us. Our team of experts is here to help.
