From 1 March 2023 onwards, ATO changed the way that taxpayers claim deductions for costs incurred when working from home and work-related self-education. 

There are 2 methods available to calculate your claim:

(1)    Revised fixed rate method: it is an amount per work hour for additional running expenses

From the 2024-2025 income year, this method has the following changes:

      The fixed rate has increased from 67 cents to 70 cents per hour worked from home. 

      It removes the requirement to have a dedicated home office space.

      It covers the claim for electricity and gas, phone and internet usage, computer consumables, and stationery

      It allows taxpayers to separately claim the work-related portion of the decline in value of depreciating assets – such as office furniture and technology, as well as any maintenance and repairs of these items

(2)    Actual cost method: it is based on the actual expenses you incur as a result of working from home, and 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.

No matter which method you choose, the ATO requires the taxpayers to record the total number of hours they work from home each day.

Please contact us directly if you need any help with this.