The Australian Taxation Office has changed one method for claiming working-from-home deductions for the 2023 income year. From 1st July 2022 to 28 July 2022, the ATO will accept a representative 4-week diary of your hours. From 1st March 2023, a record of all hours you worked is required. It is important to be prepared for these changes before the end of the tax year.
Currently, there are 2 methods available – Fixed Rate and Actual Cost Method.
What has changed?
The fixed-rate method for the 2022-2023 Income year onwards has now increased from 52 cents to 67 cents.
What do you need to do?
- If you are using this fixed rate method, you are now required to keep a record (e.g. timesheet, diary, or similar record) of the number of hours you worked from home during the year.
Please note that you will need to still keep some receipts, bills, or invoices of any separate deduction amounts or actual cost expenses. If you have worked from home during the 2023 income year, you will need to provide your accountant with your home diary when submitting your 2023 tax paperwork. If you are unsure what type of timesheet or diary record to use, reach out and we can provide you with an example.
If you need more information, click on this link to the ATO Factsheet about working from home deductions.
Good luck. Please reach out to us if you need any assistance [email protected].
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