Working from Home Expenses
Posted on Tuesday, March 14th, 2023
There have been some recent changes to the working from home expense claims, including new record-keeping requirements from 1 March 2023, and a new fixed rate method for calculating deductions that was introduced by the Australian Taxation Office (ATO) on 1 July 2022.
Under the revised method you can claim a higher rate per work hour. There have also been changes to the expenses covered.
How it works
You can claim 67 cents for each hour you work from home during the relevant income year (increased from 52 cents in prior years). The rate includes the additional running expenses you incur:
- home and mobile internet or data expenses;
- mobile and home phone usage expenses;
- electricity and gas (energy expenses) for heating, cooling and lighting;
- stationery and computer consumables, such as printer ink and paper.
The rate per work hour (67 cents) includes the total deductible expenses for the above additional running expenses. If you’re using this method, you can’t claim an additional separate deduction for these expenses.
Record keeping for the fixed rate method
To claim your working from home deduction using this method, you must keep:
- A record of the number of actual hours you work from home during the entire income year – for example, a timesheet, roster, diary or other similar document.
- At least one record for each of the additional running expenses you incur that the rate per work hour includes – for example, if you incurred electricity and stationery expenses keep one quarterly bill for your electricity expenses and one receipt for your stationery expenses.
Record keeping for 2022–23
If you haven’t been keeping a record of the actual hours you worked from home, for the 2022–23 income year only, 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 – for example, any kind of record of the hours you worked from home for a particular period that you can apply to the whole 8-month period.
- A record of the total number of actual hours worked from home for the period 1 March 2023 to 30 June 2023.
If you don’t use the revised fixed rate method, you need to use the actual costs method to claim a deduction for the additional expenses you incur as a result of working from home.
Please refer to our Fact Sheet for further information on Working from Home Expenses.