The method for calculating Home Office expenses has change significantly from 01 July 2022 for the 2023 income tax year.
Eligibility to claim
To claim working from home expenses, you must:
- be working from home to fulfil your employment duties, not just carrying out minimal tasks, such as occasionally checking emails or taking calls
- incur additional running expenses as a result of working from home
- have records that show you incur these expenses.
To calculate your deduction for working from home expenses, you must use one of the methods set out below.
Where you incur running expenses for both private and work purposes, you need to apportion your deduction. You can only claim the work-related portion as a deduction.
Additional running expenses
Running expenses relate to the use of facilities within your home. These expenses are generally considered private and domestic expenses. You can claim a deduction for additional running expenses you incur as a direct result of working from home.
Additional running expenses may include:
- electricity or gas (energy expenses) for heating or cooling and lighting
- home and mobile internet or data expenses
- mobile and home phone expenses
- stationery and office supplies
- the decline in value of depreciating assets you use for work – for example
- office furniture such as chairs and desks
- equipment such as computers, laptops and software
- the repairs and maintenance to depreciating assets.
In limited circumstances where you have a dedicated home office, you may also be able to claim:
- occupancy expenses (such as mortgage interest or rent)
- cleaning expenses.
From 1 July 2022 there are 2 methods available to calculate your claim:
- Revised fixed rate method 67c/hr
- an amount per work hour for additional running expenses
- separate amount for expenses not covered by the revised fixed rate, such as the decline in value of depreciating assets
- you no longer need a dedicated home office.
- You cannot also claim Mobile or Internet use if you use this method.
- Actual cost method
- the actual expenses you incur as a result of working from home.
You must keep records to show you incur expenses as a result of working from home. The type of records you need to keep will depend on the method you choose to calculate your expenses but a diary of all your home office working hours is a minimum.
For further details contact South East Access
Phone: (02) 4454 4444
Office hours are 9.00am to 5:00 pm
admin@southeastaccess.com.au
