Things are a little different if you want to claim a deduction for working from home for the 2022-23 financial year.
The shortcut method is no longer available and the ATO has made a number of tweaks to the fixed rate method. You can now claim 67 cents for each hour you work from home (up from 52 cents).
Although the rate has increased it now includes more expenses, some of which you could previously claim separately, such as phone and internet usage.
You might find you are better off using the actual cost method. This is where a good tax agent can come in handy.
If you are using the 67 cents method you also need to keep more detailed records of the hours you work from home. From 1 March 2023 onwards, estimates or a 4-week representative diary no longer cut it.
Check out the ATO website for more details on the ins and outs.
Effie Zahos has been providing expert advice on personal finance and consumer issues for over two decades, and her insights are sought after by many Australians.
The author of several best-selling books on personal finance, including “A Real Girl’s Guide to Money: From Converse to Louboutins,” “Getting Rich, Staying Rich: A Practical Guide to Investing in Shares,” and “The Great $20 Adventure,” her expertise and experience in the area of finance are unparalleled, and she is a passionate advocate for financial literacy in Australia.
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These Tax Tips with Effie Zahos are for general information only, not tax advice.
Before making any decisions you should speak to a registered tax adviser.