The way to calculate a working from home deduction using fixed cost method for additional running expenses has been adjusted from 1 July 2024, with the ATO issuing a new hourly fixed rate.
The Australian Taxation Office (ATO) has issued new guidelines to help you in making a claim for running expenses using the fixed cost method, while working from home from 1 July 2024.
Under this guidance, the ATO will allow you to make a claim of 70 cents per hour for time spent working from home. This claim is a simplified method which includes expenses for:
- Energy expenses (electricity and/or gas) for lighting, heating/cooling and electronic items used while working from home
- Internet expenses
- Mobile and/or home telephone expenses, and
- Stationery and computer consumables.
This means you cannot claim an additional separate deduction for any of these expenses. For eg, if you use your mobile phone when you are working from home and when you are working from somewhere other than your home, your total deduction for the income year will be covered by the hourly fixed rate.
However, under the revised fixed-rate method, a separate claim can be made for depreciation and repairs and maintenance on furniture and equipment.
In order to make this claim, you will need to keep:
- Evidence of additional expenses incurred in the form of monthly/quarterly bills or purchase receipts
- A diary of the days you work from home, this can be backed up by evidence such as your timesheet or a roster, and
Contact us
With tax time approaching soon, if you require any more information about calculating this deduction, please let us know and we will be happy to assist you further.