Working from home deduction changes for 2022–23
The record keeping requirements and methods for calculating working from home deductions has changed for the 2022–23 income year onwards.
Following consultation with the tax profession, the proposed changes to the working from home fixed rate method have been finalised.
From the 2022–23 income year, the methods available to calculate working from home deductions are the:
While the actual cost method remains unchanged, the revised fixed rate method has been updated to better reflect contemporary working from home arrangements, making it easier to calculate expenses and avoid time-consuming apportionment calculations.
The revised fixed rate method can also be used by businesses that operate some or all of their business from home to claim home-based business expenses.
If your client plans to use the revised fixed rate method for their 2022–23 tax return, they need to have:
If you have any questions, please contact us.
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