Changes to your Working From Home Tax Deduction

The tax-year end of 2022-2023 is upon us and we have been notified of some changes to the Work From Home (WFH) tax deduction. Since the pandemic many companies have made use of WFH arrangements for all levels of management and employees. In certain circumstances you are entitled to apply for a tax deduction based on your WFH expenses, these are that:

• You have been working from home to fulfil your employment duties, not just carrying out minimal tasks, such as occasionally checking emails or taking calls.
• You have incurred additional running expenses as a result of working from home.
• You have records that show you incurred these expenses.

In limited circumstances where you have a dedicated home office, you may also be able to claim:

• occupancy expenses (such as mortgage interest or rent)
• cleaning expenses.

For previous years there were 3 methods of calculating the WFH deduction, being:

1. Actual Cost (Calculate Actual Costs)
2. Fixed Rate Method (52 cents per work hour)
3. Shortcut Method (80 cents per work hour)

The ATO has amended the WFH calculation methods for the 2022-2023 tax year and removed the use of the Shortcut Method. The Shortcut Method will not be accepted for the 2022-2023 tax period.

For more information on these methods and expenses that you cannot claim, please visit the ATO website.