How to Claim Working from Home Expenses in 2023 using the Fixed Rate method.

The ATO has updated the way you can claim deductions for working from home expenses. The changes suit the way people work from home nowadays.

The ATO explained that you can choose between two methods to claim your expenses: the "actual cost" or the "fixed rate" method. Only the fixed rate method is different for the 2023 tax year.  The Actual cost method for home office expenses is a document rich requirement of the ATO.

The new fixed rate method starts from 1 July 2022 and you can use it when you do your tax return for 2022–23.

Before you claim your working from home expenses, you need to make sure you qualify for them. You can't just claim them if you work from home once in a while or do some simple tasks, like checking your emails or answering some calls. You have to work from home as part of your job and spend more money because of it.

Also, don't forget to keep records of your expenses. This will help you choose the best method for your situation and get the most deduction at tax time.  the best way to keep your documents throughout the year is with the Gotax Deduction Grabber.  Scan the QR code..

The new fixed rate is 67 cents per hour and it covers things like electricity, gas, phone, internet, stationery and computer consumables. You can't claim anything extra for these things if you use this method.

But you can still claim separately for things like computers and office furniture that you use for work. These are things that lose value over time, so you can claim a deduction for their depreciation. You can also claim for the repairs and maintenance of these things. And if you have a home office that you clean yourself, you can claim for the cleaning costs too.

Another good thing is that you don't need a separate or dedicated home office to use the fixed rate method.

Get cracking on the gotax online portal.  It does all the nasty calculations for you.