Working from home deduction changes for the 2022/2023 Financial Year
Working from home deduction changes for the 2022/2023 financial year.
The methods for calculating working from home deductions has changed for the 2022–23 income year.
There are two methods available to calculate working from home deductions as follows:
revised fixed rate method
actual cost method. (This method remains unchanged)
The fixed rate method changes include:
rate has increased from 52 cents to 67 cents per hour worked from home
no requirement to have a dedicate home office space
rate includes the claim for electricity and gas, phone and internet usage, computer consumables and stationery.
On top of this, you can claim the work related portion of the decline in value of depreciating assets – such as office furniture and technology.
The following evidence is required to use the revised fixed rate method:
from 1 July 2022 to 28 February 2023 – a record which is representative of the hours worked from home.
from 1 March 2023 to 30 June 2023 – a record of the total number of hours worked from home (such as a timesheet, roster or diary).
at least one record for each of the additional running expenses you incur that the rate per work hour includes (for example, if you incurred electricity and stationery expenses keep one quarterly bill for your electricity expenses and one receipt for your stationery expenses).
receipts for any equipment bought to work from home, like technology or furniture.
The team at Bob Reus & Co will be able to work out which method is best suited to maximise your working from home tax deduction.
Written By Alicia Callanan
(Client Services Specialist – Accounting & Tax Team)