ATO brings in changes for calculating working from home deductions.
These changes will require more paperwork and time, and they come into effect for the 2022-2023 tax year.
How it works
You can claim 67 cents for each hour you work from home during the relevant income year. The rate includes the additional running expenses you incur for:
- home and mobile internet or data expenses
- mobile and home phone usage expenses
- electricity and gas (energy expenses) for heating, cooling and lighting
- stationery and computer consumables, such as printer ink and paper.
- The rate per work hour (67 cents) includes the total deductible expenses for the above additional running expenses. If you're using this method, you can't claim an additional separate deduction for these expenses.
A fixed rate of 67 cents per hour can be claimed.
Broadly put, the ATO will require a timesheet / diary / log book or similar evidence to be kept with the dates / exact numbers of hours worked (from home) on each date.
You must however still keep a record / invoice for at least one of these expenses, so we recommend you retain with your tax records an annual internet, phone and electricity invoice.
A transitional period will apply from July 2022 to February 2023 for the 2023 income tax return only.
Additional information is available here: https://www.ato.gov.au/individuals/income-and-deductions/deductions-you-can-claim/working-from-home-expenses/fixed-rate-method—67-cents/