The ATO has changed how working from home deductions can be claimed by eligible taxpayers for the 2023 income year. If you have worked from home at any time from 1 July 2022 to 30 June 2023, you may be eligible to use the ATO’s revised fixed-rate (67 cents per hour) method.
The revised fixed-rate (67 cents per hour) method include the following expenses
1. Energy expenses (i.e., electricity and gas) for lighting, heating/cooling, and to run electronic items used for work or business
2. Internet expenses
3. Mobile and home telephone expenses; and
4. Stationery and computer consumables (e.g., printing paper and printer cartridges).
This is an alternative method to claiming for the above running expenses using the actual expenses method, which would require a separate claim for the work/business portion of each expense.
Claims for deductible work from home expenses not covered by the revised fixed-rate method (e.g., depreciation) can be claimed under the actual method.
You will also need to keep a record (e.g., a timesheet, diary or similar record) of the number of hours you worked from home during the year
- From 1 July 2022 to 28 February 2023 – Record of the number of hours worked from home over a representative period (e.g., a four-week period). This can then be used to estimate the total number of hours worked for the period.
- From 1 March 2023 to 30 June 2023 – Record of the total number of actual hours worked from home.