Re: Changes to the way working from home deductions are claimed for 2023

The ATO has changed how working from home deductions can be claimed by eligible
taxpayers for the 2023 income year.

If you have genuinely worked from home at any time from 1 July 2022 to 30 June 2023, you
may be eligible to use the ATO’s revised fixed-rate (67 cents per hour) method to claim for:

• energy expenses (i.e., electricity and gas) for lighting, heating/cooling, and to run electronic
  items used for work or business;
• internet expenses;
• mobile and home telephone expenses; and
• stationery and computer consumables (e.g., printing paper and printer cartridges).

Under the revised fixed-rate method, a claim for the above running expenses is calculated at a fixed rate of 67 cents 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 actual expenses method, which would require a separate claim for the work/business portion of each expense.

Claims for deductible running expenses not covered by the revised fixed-rate method (e.g., depreciation of a computer used for work or business) can be claimed under the actual method.

What records do you need to keep when using the ATO’s revised fixed-rate method?

You will need to keep some receipts, bills or invoices of the running expenses you have incurred in order to verify your claim.

You will also need to keep a record (e.g., a timesheet, diary or similar record) of the number of hours you worked from home during the year, basically as follows:

• From 1 July 2022 to 28 February 2023 – The ATO will generally accept a record of the number of hours worked from home over a representative period (e.g., a four-week period). This can then be used to estimate the total number of hours worked for this entire period.
• From 1 March 2023 to 30 June 2023 – You need to keep a record of the total number of actual hours worked from home. This effectively means that you will need to make a record (e.g., a diary entry) of the number of hours worked from home on each occasion that you worked from home.

I have also provided a sample working-from-home diary that could be used for this purpose.

If you have worked from home during the 2023 income year, please contact our office to discuss your situation further as you are likely to be affected by the above changes.

Kind regards

Deena Keith

It is getting to that time of year again.

Here are a few things that you should look at getting ready to bring in when you come to get your tax done.

1. All PAYG Summaries from employers
2. Interest received from bank accounts (savings, term deposits)
3. Statements from Trusts or managed funds
4. Information re: small business that you may have.
5. Rental statements and all deductions
6. Capital Gain information if you have sold shares or rental properties.
7. Other income – from jury duty etc.
8. All work related deductions:
   1. Do you use your motor vehicle for work purposes (not just driving to and from work)?
      Unless you are a trade person and have very large objects to transport or if your position requires you to go out on site or to visit clients using your own vehicle
   2. Did you do any travel for work that is not paid for by your employer?
   3. Do you have a work uniform (with a logo) that either you or your employer provides, protective work boots or other protective clothing?
   4. Are you doing an study directly related to you employment that you are having to pay for?
   5. Do you have union fees?
   6. Did you do any short courses for work that you pay for?
   7. Do you purchase stationery?
   8. Do you use your telephone or home internet?
   9. Do you do any work from home? If so, how many hours per week?
   10. Do you purchase tools or equipment?
9. Do you make any gifts or donations to charities?
10. Cost of getting your tax return prepared last year?
11. Do you have sickness & accident insurance?
12. Do you have private health care? (if you do and are married you will need to have your partners taxable income for the year, as this has to be included)
13. Do you have dependent children? Names and dates of birth
14. Did you go to a remote area during the year?
15. Do you pay PAYG instalments?
16. Do you have a HELP debt or a Financial Supplement Loan?

Hope this helps get you ready for tax time. If you have any questions please just give me a call on (07) 4041 7747.

See you all soon.

Deena