If you work from home, this will affect your upcoming tax time…be prepared to make your tax time easier.
Below are some great updates from the amazing team at @@radar.accounting for all those who work from home…changes are coming!
There have been some important updates from the Australian Taxation Office (ATO) regarding how you can calculate and claim your working-from-home expenses.
The ATO has recently revised the fixed rate method, increasing it to 67 cents per hour (up from the previous rate of 52 cents per hour).
To use this revised fixed rate method for your 2023 tax return, you’ll need to keep certain records.
❗️From 1 July 2022 to 28 February 2023, you’ll need a representative record of the hours you’ve worked from home.
❗️From 1 March to 30 June 2023, you’ll need to keep an exact logbook or timesheet for each hour you work from home.
Additionally, you’ll need to keep at least one record for each of the additional running expenses that are included in the rate per work hour. For example, if you incurred electricity and stationery expenses, you’ll need to keep one quarterly bill for your electricity expenses and one receipt for your stationery expenses.
The 67 cents per hour rate includes the additional running expenses you incur for:
– Home and mobile internet or data expenses
– Mobile and home phone usage expenses
– Electricity and gas (energy expenses) for heating, cooling, and lighting
– Stationery and computer consumables, such as printer ink and paper.
It’s important to note that you can only claim expenses that are directly related to your work, and you must have spent the money yourself without being reimbursed by your employer.
Contact the friendly team at Radar Accounting if you want to get your hands on a copy of their Working from Home Template to assist you in keeping your records.