With many employees going back to work in the office, there have been revisions to how you can claim working from home expenses for the 2022-23 financial year (1 July 2022 – 30 June 2023). These changes came into effect from 1 July 2022. As detailed on the ATO website, there are two methods you can use in FY2022-23.
1. Actual cost method
This method hasn’t changed, and you can claim the actual work-related portion of your expenses. Each expense is claimed separately.
These can include:
- Decline in depreciating assets, such as home office furniture, phones, computers, etc.
- Electricity and gas for heating, cooling and lighting
- Home and mobile plans, internet
- Stationary and computer consumables
- Cleaning your home office
It’s important to keep records of all the working from home expenses being claimed. This includes bills and receipts, and how you have calculated the work-related portion of the expense compared to the private component.
See the ATO website for more information.
2. Fixed rate method
The rate for FY2022-23 has increased from 52 cents to 67 cents per work hour at home.
It covers all expenses such as:
- Electricity and gas for heating, cooling and lighting
- Home and mobile internet
- Mobile and home phone usage
- Stationary and computer consumables
This method doesn’t require you to have a dedicated home office. By using the fixed rate method, you can’t claim each item separately.
The information in this post is not advice. Read the ATO website to understand how to calculate a deduction using this method and the record-keeping required. If you’re unsure about claiming a tax deduction speak to a qualified tax accountant.
