On 2 November, the ATO released Draft Practical Guidance 2022/D4 which, if implemented, will completely change the way individuals claim deductions for working from home.
Proposed Key Changes:
- Removing the 80c/hr shortcut method
- Increasing the 52c/hr rate to 67c/hr method (but in doing so, capturing other categories of expenses that then wouldn’t be able to be claimed separately)
Calculating Home Office Hours
- For the six months to 31 December 2022:
- a representative record will be enough substantiation
- i.e., 2days/wk for 8hrs a day
- For the six months to 30 June 2023:
- Actual records must be maintained – representative records aren’t sufficient substantiation
- These records could be:
- Timesheets;
- Rosters; or
- A diary or similar document kept contemporaneously
Expenses Now Captured Under the 67c/ Method
Previously, the 52c/hr method covered electricity, heating and cooling costs incurred. The 67c/hr method is expanded to include the following expenses:
- Electricity/gas for lighting, heating/cooling and electronic items used for working from home
- Internet expenses
- Mobile and/or home telephone expenses; and
- Stationery and computer consumables
This would mean that you cannot claim the above costs separately. It is currently unclear if the inclusion of mobile costs in this list would also rule out mobile phone usage while in the workplace.
You would need to be able to provide an invoice or statement for each of the above categories (and proof that you are paying the amounts, if the account is not in your name)
This is only draft guidance – consultation closes 30 November – if this is confirmed, we will be sending out more guidance to help you with the transition.
