Working from home deduction changes 2022-23

 

The ATO has issued guidance explaining the changes to record keeping requirements and methods for calculating working from home deductions for the 2022–23 income year onwards.

 

The revised fixed hourly rate of claim is $0.67/hr.  This covers energy expenses (electricity and gas), phone usage (mobile and home), internet, stationery, and computer consumables

 

If you plan to calculate your deduction using the revised fixed rate method for your 2022–23 tax return, you need to have:

 

• from 1 July 2022 to 28 February 2023 – a record which is representative of the hours you worked from home (eg. A 4 week diary record or log – much like a car log demonstrating your pattern or WFH over a 4 week period)
• from 1 March 2023 to 30 June 2023 – a record of the total number of hours you worked from home (such as a timesheet, roster or diary) as well as evidence you paid for each of the expenses you incurred that are covered by the fixed rate method (for example, a phone, internet or electricity bill). You will also need records for any equipment you bought to work from home, like technology or furniture (which provides details of the supplier, cost, date acquired) which are not included in the revised fixed hourly rate.

 

If you don’t utilise the fixed hourly rate method and chose to claim actual costs of working from home you will need;

• one month logs for phone and internet usage along with your bills
• records of power consumption for each electrical device and your electricity bill
• copies of cleaning bills and apportionment calculations for your office space
• Receipts for equipment purchases.

Please click here for the link to the ATO guidance.

Should you wish to discuss record keeping and substantiation requirements please call us on 02 9908 4744