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The way you can claim tax deductions for working from home has changed.
The Australian Tax Office (ATO) has changed the way you can claim working from home tax deductions.1
You may need to keep different records for your tax return.
If you work from home, you can choose one of two methods to claim working-from-home deductions:
The ATO has changed the way you can claim the fixed-rate method.
The revised fixed-rate method applies from 1 July 2022 and can be used when you are working out deductions for your 2022–23 income tax returns. The changes are:
Fixed-rate method rate
What’s covered by the rate
You no longer need a dedicated home office to use the fixed-rate method.
The actual cost method hasn’t changed. You can claim the actual work-related portion of all running expenses.
To claim working-from-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.
You also must incur additional expenses as a result of working from home. You can’t claim for things like coffee, tea, milk and other general household items.
You need to keep a record of all the hours worked from home for the entire income year.
The ATO said the changes aim to better reflect contemporary working-from-home arrangements.
ATO Assistant Commissioner Tim Loh said the changes provided benefits if you’re using the revised fixed rate method in 2022–23.
“Another benefit is that you no longer need a dedicated home office to use the fixed-rate method.”
The revised fixed rate of 67 cents per work hour covers:
You can’t claim additional deductions for any expenses covered by the rate if you use this method. But you can separately claim:
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1. Media release, 16 February 2023, ATO announces changes to working from home deductions ATO announces changes to working from home deductions, at ato.gov.au
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