The ATO has issued new updated guidance for individuals claiming home office expenses
1. Methods of Claiming
Choice of Methods: Since 1 July 2022, individuals can choose between two methods to claim home office expenses:
Revised Fixed Rate Method (67 cents per hour)
Actual Cost Method
2. Revised Fixed Rate Method
No Minimum Hours: No minimum hours of work from home are required to use the revised fixed rate method, as long as:
You perform substantial work or business activities (not just minor tasks like checking emails).
You incur additional running expenses due to this work.
You keep and retain relevant records.
Record Keeping: You need detailed records of your work hours from home, including start and finish times. Acceptable formats include:
Diary entries
Spreadsheets
Rosters
Timesheets
No More Estimates: Estimates or sample periods are no longer accepted for the revised fixed rate method.
3. Actual Cost Method
Additional Deductions: If using the actual cost method, you might also be eligible to claim:
Mobile phone calls
Data usage costs
Apportioning Work vs. Private Use: To manage this, keep a diary for a continuous 4-week period to track work-related versus private use.
4. Home Office Expenses
General Rule: Employees generally cannot claim deductions for home office expenses like rent, insurance, or mortgage interest unless their home qualifies as a ‘place of business’.
If you have any questions about what you can and cannot claim, or how to keep records, please contact us
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