Do you work from home for all or part of your employment? The ATO has released a updated compliance approach from 1 July 2022 which should be read in conjunction with TR 933/30 which explains when working from home expenses are tax deductible.
To calculate your total deduction for running expenses using the revised fixed-rate method:
- calculate the number of hours worked from home during the income year based on taxpayer records
- multiply the total number of hours worked from home during the income year by 67c per hour
- calculate the work-related decline in value of any depreciating assets used to work from home during the income year and any other running expenses incurred which are not covered by the rate per hour
- add the amounts calculated at (2) and (3) – this is the amount that may be claimed as a deduction in the taxpayer’s tax return.
A record of hours for the income year can be in any form, provided it is kept contemporaneously. For example, records may be kept in one of the following forms:
- timesheets
- rosters
- logs of time spent accessing employer systems or online business systems
- time-tracking apps
- a diary or similar document kept contemporaneously.
For the 2022-23 income year only, taxpayers need to keep:
- a record which is representative of the total number of hours worked from home during the period from 1 July 2022 to 28 February 2023, and
- a record of the total number of actual hours worked from home for the period 1 March 2023 to 30 June 2023.
Source: Colonial First Tech, Latest News, February 2023
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