Updates to working from home rates

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The ATO have updated how you can claim working from home deductions. As of 1 July 2022 we again have two methods to choose from; the revised fixed rate method and the actual cost method.

 The Actual Cost Method

The actual cost method remains the same, it allows you to claim the actual expenses you incurred while working from home. These expenses include but are not limited to:

·         Phone and internet usage

·         Power and gas

·         Stationary and home office consumables

·         Decline in value for assets used while working from home

To claim your working from home expenses using the actual cost method you are required to keep records of all costs incurred and must have evidence of your work-related use for all expenses. Additionally, you must have a record showing the total number of hours worked during the year or record of a continuous 4-week period that represents your standard working from home hours for the year. Without substantiation of your expenses or working from home hours we are unable to claim a deduction.

Revised Fixed Rate Method

From 1 July 2022, the short cut method is no longer available and the fixed rate method has been revised. The revised fixed rate method enables you to claim 67 cents per hour for all hours you worked at home during the financial year. To claim a deduction using this method you are required to keep record of the total number of hours you have worked from home during the financial year – this may be from your timesheet, roster, diary or other similar documentation. Without record of your hours worked from home we are unable to claim a deduction.

What the revised fixed rate covers

The 67 cents per hour now includes the following running expenses, you are unable to claim an additional deduction for these (as you may have in previous years):

·         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.

What the revised fixed rate does not cover

You may be eligible to claim the following additional deductions or the decline in value for:

·         Work-related computer equipment

·         Work-related office furniture such as chairs, desks, computers, bookshelves

For more information on working from home expenses visit the ATO.