Here we explain the eligibility criteria and the process for claiming deductions for working from home expenses using the fixed rate method of 67 cents per hour. Here are the key points:
Changes to the fixed rate method: The fixed rate method has been revised, increasing the rate per work hour that can be claimed and changing the expenses it covers. It also removes the requirement to have a dedicated home office.
Eligibility to claim: To use the revised fixed rate method, you must incur additional running expenses due to working from home, have records of the total number of hours worked from home, and keep records for expenses not covered by the fixed rate.
Expenses covered by the fixed rate: The fixed rate of 67 cents per hour covers additional running expenses such as home and mobile internet, phone usage, electricity and gas, and stationery and computer consumables.
Separate deductions for other expenses: You can separately claim deductions for the work-related use of technology, office equipment, repairs, and maintenance. Immediate deductions can be claimed for items costing $300 or less used mainly for work-related purposes.
Calculation of deduction: To calculate your deduction, you multiply the total number of hours worked from home by the fixed rate of 67 cents per hour. Additionally, you calculate the decline in value of any depreciating assets used for work and add other working from home expenses not covered by the fixed rate.
Record keeping: You need to keep records of the number of hours worked from home, expenses covered by the fixed rate, and other records for depreciating assets and separate deductions. These records should be kept for 5 years.
Record keeping for 2022-23:
If you haven't kept records of actual hours worked from home for the period from 1 July 2022, you need to provide a representative record for that period and keep a record of actual hours worked going forward.
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