The ATO has recently made changes to the methods available for calculating deductions for working-from-home expenses. The 80 cents per hour method is now superseded, clearly someone thinks this was too generous! These changes apply from 1 July 2022 and allow deductions to be calculated using one of two available methods. The available methods are the revised fixed rate method and the actual cost method.
Revised fixed rate method
Under the revised fixed rate method, you can claim 67 cents per hour when working from home. This amount covers the additional running expenses of gas, electricity, internet, mobile data, and stationary consumables, such as ink and paper incurred as a result of working from home. Under this method, a separate deduction is not allowed for any additional running expenses. However, a deduction is allowed for the decline in value resulting from the work-related use of assets such as computers and office furniture. The revised fixed rate method requires a record to be kept of the actual hours worked from home for the entire income year and a minimum of one record of each additional running expense incurred.
Actual cost method
Under the actual cost method, you can claim a deduction for the actual additional running expenses incurred and the decline in value of assets incurred as a result of working from home. The amount claimed as a deduction must be reduced for any portion of non-work-related use. The actual cost method requires records of the additional running expenses incurred to be kept along with a record of the number of hours worked from home for the entire income year or a 4-week representative.