Proving Total Hours Worked from Home

Working from home has become increasingly common, and with it comes the need to keep accurate records for tax deductions. The Australian Taxation Office (ATO) has specific requirements for proving the total hours you worked from home, especially if you want to use the revised fixed-rate method (67 cents per hour). Here's a simple guide to help you with these requirements, identify potential traps, and maximise your deductions.

Essential Records to Keep

To claim deductions for working from home, you must keep detailed records of the total hours worked. The ATO no longer accepts estimates based on a representative period. Instead, you need to maintain records for the entire income year. Here are the types of records you can use:

1. Timesheets: Keep a daily log of the hours you work from home.
2. Rosters: If your work schedule is predetermined, a roster can serve as a record.
3. Time-Tracking Apps: Use apps designed to track work hours accurately.
4. Diaries or Logs: A handwritten or digital diary where you log your hours daily.
5. Giotax Deduction Grabber App: Has all the diaries you need.

Home Running Expenses

In addition to proving your work hours, you must also keep records of home running expenses incurred. These include:

• Energy Bills: Keep one monthly or quarterly bill. If the bill is not in your name, additional evidence is required.
• Internet and Phone Bills: Similar to energy bills, keep one monthly or quarterly bill.
• Stationery and Consumables: Keep receipts for occasional expenses like printer paper and cartridges.

Common Traps to Avoid

1. Incomplete Records: Ensure your records cover the entire income year. Partial records won't be accepted.
2. Incorrect Billing Details: If bills are not in your name, make sure to have additional evidence showing you incurred the expense.
3. Estimations: Avoid using estimates based on a short period. The ATO requires contemporaneous records.

Example Scenario

Heidi works from her usual place of residence two days a week and from her holiday home one day a week. She keeps a detailed diary logging her hours worked at both locations. Helen also retains her energy and internet bills, ensuring they are in her name or provides additional evidence if they are not. By maintaining these records, Helen can claim deductions using the revised fixed-rate method without any issues.

Gotax Advice

To simplify your record-keeping, consider using the Gotax Deduction Grabber App. It includes all the log books and tax expense recording systems you need. Scan the QR code to download and make your tax season stress-free.

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