Working From Home (WFH) Deduction Changes for 2022–2023

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Working From Home (WFH) Deduction Changes for 2022–2023

The Australian Taxation Office (ATO) announced a revised “fixed rate method” allowing WFH expenses to increase from 52 cents to 67 cents per hour from 1 March 2023.

The revised fixed rate of 67 cents per work hour covers energy expenses (electricity and gas), phone usage (mobile and home), internet, stationery, and computer consumables. 

However, taxpayers can claim depreciation assets separately. These claims can include the following types of home office costs:

• Decline in the value of assets used while working from home, such as computers and office furniture.

• Costs for repairing and maintaining these home office assets.

• Costs associated with cleaning a “dedicated home office”.

Record Keeping is Vital

• Taxpayers need to keep a record of all the hours worked from home from 1 March 2023. ATO won’t accept estimates, a 4-week representative diary or similar document under this method.

• Records of hours worked from home can be in any form provided they are kept as they occur, for example, timesheets, rosters, logs of time spent accessing employer or business systems, or a diary for the full year.

• Records must be kept for each expense taxpayers have incurred which is covered by the fixed rate per hour (for example, if taxpayers use their phone and electricity when working from home, they must keep one bill for each of these expenses).

Should you have any questions in relation to the revised “fixed rate method”, please contact our office.

Janey Wu, Tax Accountant


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