ATO Announces Changes to Working from Home Deductions
The Australian Taxation Office (ATO) has recently reviewed and now finalised the way that taxpayers claim deductions for costs incurred working from home.
Taxpayers can choose one of two options to claim on the working from home deductions which is the “actual cost” or the “fixed rate” option. It is only the fixed rate option that is changing.
The amended fixed rate method applies from the 1st July 2022 and can be used when taxpayers are working out the deductions for their 2022-2023 income tax returns.
In summary the below link covers the reviewed fixed rate options and the changes made. These changes include the following:
- Rate increase
- What is covered by the rate
- What can be claimed separately
- Home office space
- Record keeping