Sudden new guidelines round claiming home-office prices

Chartered accountant GAIL FREEMAN shares an perception into the potential new, arduous guidelines round claiming working-from-home bills.

The principles for claiming dwelling workplace bills have modified and we had been solely simply notified of this.

A draft tax ruling was issued, which accommodates many surprises. Keep in mind that is solely a draft. Nevertheless, I’d advocate you begin retaining information in accordance with this draft now.

Gail Freeman.

Till June 20, 2022, you had the selection of claiming 80 cents an hour, 52 cents an hour or precise prices relying in your circumstances. In keeping with the draft ruling, efficient from July 1, 2022, until you declare the actual-costs methodology, your solely possibility is to say 67 cents an hour, with plenty of caveats. 

The ruling may be very particular that this can be a declare for added working bills incurred in working from dwelling that relate to incomes your revenue. They should be both associated to your employment or working your small business.

One important change is that you don’t want an space particularly put aside to make a declare. If there’s multiple particular person working from dwelling every particular person will have the ability to make a declare offered that they every fulfill the necessities they usually may even use a distinct methodology for claiming. Nevertheless, I’m solely trying on the 67 cents methodology on this article.

Now, that is the place it will get fascinating: 67 cents an hour contains web, power, cellphone and stationery. You may declare depreciation in your computer systems and different related objects along with 67 cents an hour. And the sting within the tail? For those who use your cellphone when working from dwelling and within the workplace to earn your revenue you don’t have any further declare as it’s included within the hourly price declare. This could possibly be fairly disadvantageous.

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The draft states that when the bill is in a single particular person’s identify however three or 4 individuals share the power prices, further information are required to point out that you simply contributed to the bills. This could possibly be difficult and if grownup youngsters stay with their dad and mom and don’t pay board they gained’t have a declare as a result of they didn’t contribute to the bills. 

Within the present 12 months (2022-2023), it’s important to hold totally different information for the primary six months and the second six months. 

So, from July to December, you needn’t hold a document that’s consultant of the whole variety of hours labored through the six-month interval. 

From January 1, 2023, you really want a document of the whole variety of hours labored from January to June. For subsequent years you want to hold a document of the variety of hours you labored from dwelling throughout that revenue 12 months. An inventory of days with eight hours per day won’t be adequate and estimates will not be acceptable.

You want proof of further working bills. You need to hold one month-to-month or quarterly invoice for web, cellphone and power. For stationery you could hold one receipt for an merchandise bought. You additionally have to have information to point out the work-related use of depreciable belongings for a four-week interval in order that the proper share could be claimed.

Sure, this appears arduous and it’s only a draft, however attempting to say the precise utilization methodology and do the mandatory apportionments will doubtless be worse and, in my expertise, typically produces a smaller deduction.

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For those who need assistance with the most recent ATO info contact the pleasant crew at Gail Freeman & Co on 6295 2844, e-mail [email protected] or go to

This column accommodates common recommendation, please don’t depend on it. For those who require particular recommendation on this subject please contact Gail Freeman or your skilled adviser.

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Ian Meikle, editor