Planning to claim working from home expenses in your 2022-23 tax return?
The Australian Taxation Office (ATO) has recently refreshed the way that taxpayers claim deductions for costs incurred when working from home. They believe these changes better reflect contemporary working from home arrangements.
Taxpayers can choose one of two methods to claim working from home deductions: either the “actual cost” or “fixed rate” method. But only the fixed rate method is changing.
Meaning, for your 2022-23 tax return, you can calculate your working from home deduction using either the:
· Revised fixed rate methods
· Actual cost method
You can no longer use the shortcut method to calculate your deduction.
While the actual cost method remains unchanged, the fixed rate method has been updated to include a rate drop from 80 cents per hour to 67 cents per hour, which applies from 1 July 2022.
Taxpayers are also required to keep significantly more detailed records from 1 March 2023 to claim under the new rules. So, ensure you keep all your records so that you can choose the method that works best for you.
If you’d like assistance with your personal tax return please don’t hesitate to give us a call, send us an email or book an appointment.
Phone Hub Advisory Group on (02) 4926 8000 or email contactus@hubadvisorygroup.com.au