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ATO revises Working-from-home regime – What you need to know!

 

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The ATO website provides full details on working-from-home eligibility. 

ATO has announced that from July 1 the short-cut method introduced during the COVID pandemic will no longer be available. 

The changes will see stricter record keeping requirements and change to the rate per hour. 

 Under the new system taxpayers working from home

  • can claim a fixed rate of 67c an hour and includes expenses such as phone and internet, stationery and electricity use and computer consumables 
  • those claiming that rate will need to keep records for costs included in the fixed rate
  • records should be kept as they occur
  • the start date for this more stringent record keeping is 1 March

 There are no changes for taxpayers who were claiming work-from-home deductions using the ‘actual cost’ method. 

 ‘Keeping records is vital the ATO spokesperson said. He also added 'to claim working from home expenses, you must be working from home to fulfil your employment duties and you must incur additional expenses as a result of working from home.’  He reminded taxpayers ‘they can’t claim for things like coffee, tea, milk and other general household items, even if your employer may provide these kinds of things for you at work.’