Jul '23 in !Key
2023 Working from Home - changed
The ATO have increased the working from home rate from 52c to 67c.
BUT...as always - there are a few catches.
- The ATO now wish to see actual records (rather than estimates we and most other accountants have been preparing).
- The 67c rate is similar to the previous 80c rate - in that it includes phone and internet. When preparing returns over the last years - we often found the 52c rate was better when there either mobile or internet use (and definitely if there was both mobile and internet).
- The 52c rate is no longer available to be used - so to get clients the best deduction I think it is likely we will be claiming the actual rates - calculating a portion of the electricity they use - along with mobile and internet.
I note that Australian tax is a 'Self Assessment' system - and that our clients have not been audited in the past (with perhaps 6 or 7 exceptions which were expected because of known very large deductions) - so we will work with you to maximise your legal deduction.
ATO Document: PCG 2023/1 Claiming a deduction for additional running expenses incurred while working from home - ATO compliance approach
Example 2 - cannot rely on the practical compliance approach
Dan must be in the office at least 3 days per week and can either work in the office or from home for the other 2 days per week. Dan only works from home if he does not have client meetings, so he does not always work 2 days per week from home.
Hours worked from home = 2 days per week × 8 hours per day × 49 weeks = 784 hours
Additional running expenses = 784 hours × 67c = $525
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2023 Working from Home - changed
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