Working-from-home deductions are an audit target by the A.T.O. this financial year.
The A.T.O. appears concerned that taxpayers claiming their work-from-home tax deduction will simply copy and paste their claim for this year from their previous tax returns.
The A.T.O. surmises that taxpayers’ overall deductions for working from home should be reduced, principally because the rate per hour has declined over the past three years.
In 2022, you could claim a rate of 80 cents per hour if you worked from home. In 2023, it was reduced to 67 cents per hour. This rate includes electricity, phone and internet use, stationery, and computer consumables. Be careful not to double up on these expenses, i.e., claiming the fixed rate of 67 cents per hour and stationery and computer costs.
You can claim separately for depreciable assets such as office furniture and technology.
Using this fixed rate method, you must also maintain the following records;
1. The total number of hours worked from home for the full financial year,
2. Phone bills, electricity bills,
3. The receipts for any furniture or technology you intend to depreciate.
Should you require further information about deductions relating to working from home, please feel free to contact Peter Quinn by submitting an enquiry or calling us on +61 2 9580 9166 to book an obligation-free appointment.
The information in this document does not consider your personal objectives, financial situation or needs, so you should consider its appropriateness regarding these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision, and it is recommended that you seek assistance from your financial adviser.