Working from home deduction from 1 July 2022

The Australian Taxation Office (ATO) has issued new guidelines to help you in making a claim for expenses while working from home from 1 July 2022.

Under this new guidance, the ATO will allow you to make a claim of 67 cents per hour for time spent working from home using a revised “fixed-rate method”.

This is a simplified method which includes expenses for:

• energy expenses (electricity and/or gas) for lighting, heating/cooling and electronic items used while working from home
• internet expenses
• mobile and/or home telephone expenses, and
• stationery and computer consumables.

The previous shortcut method of 80c per hour, introduced in response to the COVID pandemic, no longer applies from that date.

Under the fixed-rate method, you can make a separate claim for depreciation on furniture and equipment that you use when you work from home.  In order to make this claim, you will need evidence, such as a diary of the days you work from home, to support your work-related use.

The actual cost method remains available and requires records to be kept which show the amounts spent on additional expenses to work from home and the work-related use of such expenses and any depreciating assets should you wish to use this method.

If you require any more information about calculating this deduction, please let us know and we will be happy to assist you further.

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