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New Changes to Working from Home Deductions

New Changes to Working from Home Deductions

By Prime Advisory, 10 August 2023

Did you work from home at the height of the pandemic? Millions of Aussies did exactly that, so it’s worth taking note of the ATO’s latest changes to work from home deductions. 

While the actual cost method of calculating tax deductions hasn’t changed, the ATO has simplified how to claim fixed rate tax deductions incurred while working from home.

If your work from home incurred additional expenses and involved more than just occasionally checking emails or taking phone calls, you’re eligible to use the revised fixed rate method of calculating deductions. 

“Items that are difficult and tedious for everyday Aussies to calculate actual work-use, like phone, internet and electricity expenses, are included in the revised rate,” explained the ATO’s Assistant Commissioner, Tim Loh.

“Assets and equipment that typically give taxpayers a bigger deduction, such as technological items and office furniture, are not included in the revised rate and need to be claimed separately,” Loh said. 

The revised fixed rate method came into affect from 1 July 2022 and can be used when taxpayers are working out deductions for their 2022-23 income tax returns—with the ATO pointing out that transitional arrangements are in place for those who haven’t kept detailed records last tax year.

Learn more about the ATO’s latest changes to working from home deductions.


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