The ATO has announced changes to how Australians can calculate their deductions for working from home.
The current methods include:
- A fixed-rate method of 52 cents per hour
- An actual cost method
- A shortcut method of 80 cents per hour (a temporary method introduced during the pandemic, which applied from March 2020 and ended on June 30 last year).
The changes to claiming working from home deductions include revising the fixed rate deductions method, altering eligibility requirements, and modifying how you claim work from home assets like computer (including repairs and maintenance). Additionally, there is a significant change to the record-keeping requirements.
The revised fixed rate method has seen an increase in the amount that can be claimed as a deduction from 52 cents to 67 cents per work hour. This includes the running costs of work from home activity and includes energy expenses (such as electricity and gas bills), home and mobile phone usage costs, internet bills, stationery, and ‘computer consumables’ (including printer paper and ink). There are no changes to the ‘actual cost’ method.
Accordingly, those who work from home should keep a record of all the hours they work from home, as well as receipts and invoices for any of these costs to ensure a correct claim can be made.
Get in touch if you have any questions or clarification.