The record keeping requirements and methods for calculating working from home deductions has changed for the 2022–23 income year onwards.

From the 2022–23 income year, the methods available to calculate working from home deductions are the:

• revised fixed rate method
• actual cost method

The revised fixed rate method:

• has increased from 52 cents to 67 cents per hour worked from home
• removes the requirement to have a dedicate home office space
• works out the claim for
  • electricity and gas
  • phone and internet usage
  • computer consumables
  • stationery
• allows taxpayers to separately claim the work-related portion of the decline in value of depreciating assets – such as office furniture and technology.

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 you plan to use the revised fixed rate method for their 2022–23 tax return, you need to have:

• from 1 July 2022 to 28 February 2023 – a record which is representative of the hours you worked from home
• from 1 March 2023 to 30 June 2023 – a record of the total number of hours you worked from home (such as a timesheet, roster or diary) as well as evidence you paid for each of the expenses incurred that are covered by the fixed rate method (for example, a phone or electricity bill). You will also need records for any equipment bought to work from home, like technology or furniture (which provides details of the supplier, cost, date acquired).

The actual cost method remains unchanged from prior years.