If you regularly work from home, a small but potentially welcome update from the Australian Taxation Office (ATO) could impact your next tax return.
In a retrospective update to legislation, the fixed rate for claiming work-from-home expenses has been proposed to increase from 67 cents to 70 cents per hour for the 2024–25 income year (with the change to be in effect from 1 July 2024).
What’s Covered By The 70c Rate?
The updated fixed rate includes:
- Electricity and gas for heating, cooling and lighting
- Internet and mobile/home phone usage
- Stationery and computer consumables
One important thing to note: if you use this fixed rate, you can’t claim these expenses separately – they’re all bundled into the 70c per hour rate. However, you can still claim:
- Depreciation on office equipment like laptops, monitors and furniture
- Repairs or maintenance on those items
- Cleaning costs for a dedicated home office space
Keeping Records Is Still Essential
To be eligible, you’ll need to keep a record of the actual hours you worked from home over the income year.
This could be a digital calendar, timesheet, roster, or diary.
You’ll also need at least one document (like a bill or invoice) for each type of expense included in the fixed rate to show you incurred it.
What This Means for You
This fixed-rate method remains a helpful and streamlined option for those working remotely, but it’s not automatic. Accurate record-keeping and knowing which items are included – and excluded – are key to maximising your deduction.
If you’re unsure which method is best for your situation or how to prepare your records, we’re here to help. Contact our team, and we can guide you through your options to ensure your tax return reflects your actual working situation.
