PCG 2023/1 outlines the ATO’s new method (‘the fixed-rate method’) for calculating additional running expenses while working from home, which has applied from 1 July 2022.
Editor: This guideline was recently updated to increase the work from home fixed rate from 67 cents to 70 cents per hour from 1 July 2024.
The fixed-rate method allows taxpayers to claim at a rate of 70 cents per hour for the following additional running expenses for working from home:
q energy expenses (electricity and gas) for lighting, heating, cooling, and electronic items used while working from home;
q internet expenses;
q mobile and home phone expenses; and
q stationery and computer consumables.
However, PCG 2023/1 does not cover occupancy expenses relating to a home, such as rent, mortgage interest, property insurance and land tax.
Taxpayers are not required to use the above fixed-rate method — as from 1 July 2022, they can instead continue to claim the actual expenses they incurred as a result of working from home and keep all records necessary to substantiate their claim.