Since the Covid-19 pandemic reached our shores, one of the big points of focus for many buyers has been finding a property with space to work from home comfortably.
Anyone who perched around the dining table, jostling for space as their children did their homework, knows the importance of work-from-home space.
The Australian Taxation Department has now made changes to work-from-home expenses.
While you should always consult your accountant or financial advisor, you may wish to ask about these changes:
If you have genuinely worked from home at any time from July 1, 2022, to June 30, 2023, you may be eligible to use the ATO’s revised fixed-rate (67 cents per hour) method to claim for:
- Energy expenses (electricity and gas)
- Lighting, heating, cooling
- Running electronic items used for work or business
- Internet costs
- Mobile and home telephone expenses
- Stationery and computer consumables (for example, printer cartridges and paper).
Under the revised fixed-rate method, a claim for the above running expenses is calculated at a fixed rate of 67c for each hour that you worked from home during the 2023 income year.
This is an alternative method to claiming for the above running expenses using the conventional way, which would require a separate claim for the work/business portion of each expense.
You must keep some receipts, bills or invoices of the running expenses you have incurred to verify your claim.
You will also need to keep a record such as a timesheet, diary or similar record of the number of hours you worked from home during the year.
NOTE: The information in this article is general in nature and provided as a general overview only. Always consult your financial advisor or accountant for advice specific to your personal circumstances.