ATO finalises revised fixed rate for work from home expenses

ATO finalises revised fixed rate for work from home expenses

The Australian Taxation Office (ATO) has refreshed the way that taxpayers claim deductions for costs incurred when working from home. The changes better reflect contemporary working from home arrangements.

The finalised PCG 2023/1 Claiming a deduction for additional running expenses incurred while working from home - ATO compliance approach remains broadly unchanged from the draft PCG issued in November 2022, however the start date to commence daily record-keeping has shifted to 1 March 2023.

Key changes between the previous and revised fixed rate are:

  • An increased rate – from 52 cents to 67 cents per hour worked from home

  • Removal of the requirement to have a separate home office or dedicated work area

  • Inclusion of phone and internet expenses as well as electricity and gas usage, computer consumables and stationery costs

  • Taxpayers will now separately be able to claim the decline in value of work-related equipment, office furniture, and any other running expenses not covered by the rate per hour. 

This article has been sourced from CPA Australia.

Jenni Anderson