What are the key changes in revised fixed rate method?
- The rate per work hour has increased from 52 cents to 67 cents.
- . The revised fixed rate method doesn’t require taxpayers to have a dedicated home office space to claim working from home expenses.
- Taxpayers need to keep a record of all the hours worked from home for the entire income year – the ATO won’t accept estimates, or a 4-week representative diary or similar document under this method from 1 March 2023.
What are the expenses covered by the rate $0.67?This rate per hour covers expenses incurred for:
- Energy (electricity and gas),
- Data and internet
- Mobile and home phone usage
- Computer consumables (printer ink)
What are the expenses can be claimed separately?
- The decline in value of assets used while working from home, such as computers and office furniture.
- The repairs and maintenance of these assets.
- The costs associated with cleaning a dedicated home office.
What records do I need to claim work from home expenses?
- Taxpayers need to keep a record of all the hours worked from home for the entire income year
- Records of hours worked from home can be in any form provided they are kept as they occur, for example, timesheets, rosters, logs of time spent accessing employer or business systems, or a diary for the full year.
- Records must be kept for each expense taxpayers have incurred which is covered by the fixed rate per hour (for example, if taxpayers use their phone and electricity when working from home, they must keep one bill for each of these expenses).
- What is the revised fixed rate method?
- What expenses I can claim separately?
- What expenses I can’t claim separately?
- What records do I need to keep?