The fixed rate method for calculating your deduction for working from home expenses has been revised. This revised method is available from 1 July 2022.
To be eligible to claim a deduction for working from home expenses, you must:
• incur additional running expenses as a result of working from home
• be working from home to fulfil your employment duties, not just completing minimal tasks
• keep records at the time you work to prove you incur the cost.
To calculate your working from home expenses, you can use the revised fixed rate method or the actual cost method. Remember, you can only claim the work-related part of an expense.
Revised fixed rate method
The revised fixed rate method allows you to claim 67 cents per hour you work from home for the expenses listed below.
You no longer require a dedicated home office to use this method. Expenses included in the revised fixed rate are:
• data and internet
• mobile and home phone usage
• electricity and gas
• computer consumables (e.g. printer ink)
• stationery.
You can’t claim a separate deduction for any of the expenses the revised fixed rate includes.
You can claim a separate deduction for:
• the decline in value of assets used while working from home, such as computers and office furniture
• the repairs and maintenance of these assets
• cleaning (only if you have a dedicated home office).
Actual cost method
The actual cost method allows you to claim a deduction for the actual expenses you incur as a result of working from home. You may be able to claim a deduction for each of the expenses you incur, such as:
• data and internet
• mobile and home phone usage
• electricity and gas
• computer consumables (e.g. printer ink)
• stationery
• the decline in value of assets used while working from home, such as computers and office furniture, as well as any maintenance and repairs of these items
• cleaning (only if you have a dedicated home office).
The actual cost method requires detailed calculations and records. For example, you will need to know and have records of the cost per unit of electricity and average units used per hour.
For further information, please contact us & we’ll be happy to answer any question you may have on the topic.