Work from home expenses: new rate
A new revised fixed-rate method for calculating WFH expenses will apply from 1 July 2022 onwards. This new rate of 67c per hour covers energy expenses, internet, mobile, home phone, stationery and computer consumables. With the previous shortcut method of 80c per hour no longer available, taxpayers will only have the choice between this new revised fixed-rate method and the actual cost method from 1 July 2022. To use this new method, additional record keeping requirements in terms of actual hours worked from home and evidence of the expenses will need to be kept.
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With the recent changes, many taxpayers are finding it harder to determine which method best suits their situation. While the revised fixed-rate method offers a simplified approach, it still requires careful tracking of hours worked from home and supporting documentation for included expenses. Understanding what is covered by the hourly rate versus what can be claimed separately can make a noticeable difference to your final claim, particularly when managing ongoing work-from-home arrangements.
It’s also important to consider how your individual working arrangements may affect your eligibility and outcomes. The number of hours you work remotely, the type of expenses you incur and whether you maintain a dedicated workspace can all influence which method delivers the best result. Without a clear approach, it’s easy to overlook details that could impact your claim or reduce the overall benefit you receive.
Taking the time to get it right now can help you avoid complications later. Clear records and the correct approach not only support your claims but also make the process smoother at tax time and reduce the risk of errors or delays.
If you’re unsure how these updates apply to your work-from-home situation, or you simply want confidence that everything has been handled properly, speaking with a professional can provide clarity and peace of mind.
