The record keeping requirements and methods for calculating working from home deductions has changed for the 2022–23 income year onwards. 

From the 2022–23 income year, the methods available to calculate working from home deductions are the:

• revised fixed rate method
• actual cost method.

While the actual cost method remains unchanged, the revised fixed rate method has been updated to clearly indicate what is included in the increased rate.

The revised fixed rate method:

• has increased from 52 cents to 67 cents per hour worked from home
• removes the requirement to have a dedicate home office space
• works out the claim for
  • electricity and gas
  • phone and internet usage
  • computer consumables
  • stationery
  • No additional claim for these items if you are using the fixed rate method.
• allows taxpayers to separately claim the work-related portion of the decline in value of depreciating assets – such as office furniture and technology.
  The revised fixed rate method can be used by businesses that operate some or all of their business from home to claim home-based business expenses.
• The Taxpayer must now keep a record of the hours for the entire year. For example a timesheet or diary.

Further information regarding the above can be located at www.ato.gov.au/.

The ABC have produced an interesting article regarding the tax deduction rule changing, click here to read in full.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.