Working from home deductions - ATO's revised fixed rate
The Australian Taxation Office (ATO) released Practical Compliance Guideline (PCG) 2023/1 which sets out the revised rate for taxpayers wanting to claim work from home expenses using a fixed rate. From the 2023 financial year onwards, taxpayers will only be able to claim working from home deductions based on either the ATO's revised fixed rate, or actual costs.
Working from home deductions: Changes in the 2023 Financial Year
With the commencement of the 2023 financial year, the way in which employees may claim a tax deduction for their home office costs have changed. The 'shortcut method' allowed taxpayers in certain circumstances to claim a deduction for specified working from home costs based on an hourly rate of 80 cents per hour. This provision was widely used by taxpayers as a simple method of claiming tax deductions while working from home during periods of lockdown and company workplace policy. Effective from 1 July 2022, the 'shortcut method' is no longer available.
ATO extends work from home shortcut method – here’s what you need to know
The ATO have extended the shortcut method for claiming home office deductions to the 2021-22 income year. Here's what it means if you work from home, what you need to do now.
Working from home? Tax deductions explained
Employees working from home due to COVID-19?*
Updated 29 April 2021
With an increased number of employees working from home in the face of the coronavirus pandemic, home office expense claims are expected to rise significantly for the 2020 tax year. If employees are required to work from home, they may be able to claim a tax deduction for expenses they necessarily incur related to performing their work duties.