Tax claim changes

With increased access across Australia, including the Wimmera, to working from home, changes to Australian’s workfrom-home tax deductable income will come into effect for the 2022-23 financial year.

The Australian Taxation Office, ATO, has changed the way people claim deductions for costs incurred while working from home.

Deductions are calculated using either an ‘actual cost’, or a ‘fixed rate’ method.

ATO assistant commissioner Tim Loh said it was only the ‘fixed-rate’ method of claiming deductions that would change, providing ‘flexibility’ and removing ‘tedious’ workuse calculations of home-items deductions.

He said deductions such as phones, internet and electricity expenses would be included in the new rate, removing the need for people to calculate those expenses separately.

However larger equipment, including technology items and furniture will still need to be claimed separately.

“To claim your workingfrom-home expenses, you must be working from home to fulfil your employment duties — not just carrying out minimal tasks, such as occasionally checking emails or taking calls,” Mr Loh said.

“No matter which method you use, make sure to keep records. This will give you more flexibility to choose the method that gives you the best deduction at tax time depending on your circumstances.

“Another benefit is that you no longer need a dedicated home office to use the fixed rate method,” Mr Loh said.

‘Transitional’ arrangement will be in place for people who have not kept records of their work-from-home expense ahead of 2022-23 income tax returns.

People can visit ato.gov.au/ home for more information.