Calculation and record-keeping requirements of your working from home (WFH) deductions may have changed for the 2022-23 income year.
The 80c per hour temporary shortcut method ended on 30 June 2022.
For the 2022-23 income year you may be able to use either the revised fixed rate method or the actual cost method to determine your working from home deductions.
Whilst the actual cost method remains unchanged, the fixed rate method has increased from 52c per hour to 67c per hour. The revised fixed rate method incorporates the following usage expenses:
- electricity
- gas
- stationery
- computer consumables, such as printer ink
- internet
- phone.
It is not possible to claim an additional deduction for expenses that are already covered by the revised fixed rate method. However, you may be eligible to claim a separate deduction for the depreciation of assets, including items like laptops, mobile phones, and office furniture.
To claim your working from home deductions using the revised fixed rate method, you must be able to provide both:
- A representative record of the total number of hours worked from home during the period from 1 July 2022 to 28 February 2023.
- A record of the total number of actual hours worked from home for the period 1 March 2023 to 30 June 2023.
If you choose not to use the fixed rate method, you may be able to use the actual cost method. Please contact your Allan Hall Accountant to assist you in getting the best tax deduction for your personal circumstances.
Regardless of the method you choose, it is important to maintain accurate and complete records for at least 5 years to support your claims for home-based business expenses.