Taxpayers who have been working from home this financial year, and who consequently incurred work-related expenses, have two ways to calculate their work from home deduction:
- the actual cost method; or
- the fixed rate method.
Using the fixed rate method, taxpayers can claim a rate of 67 cents per hour worked at home.
This amount covers additional running expenses, including electricity and gas, phone and internet usage, stationery, and computer consumables. A deduction for these costs cannot be claimed elsewhere in their tax return, although taxpayers can separately claim any depreciating assets, such as office furniture or technology.
Taxpayers need to have the right records, and the record-keeping requirements differ for the fixed rate method and the actual cost method.
Editor: If you need more information regarding making these claims, please contact our office.