The Australian Tax Office has released a proposal to replace the shortcut and fixed-rate allowance for working from home. PCG 2022/D4 sets out the ATO’s post-COVID regime for WFH tax deductions.

The ATO have announced their revisions to the work-from-home (WFH) rules with these key takeaways:

• the shortcut or fixed-rate allowance of 67c per hour (down from 80c per hour)
• those who use the shortcut or fixed-rate method will be allowed to claim additional equipment and other expenses claims
• claims for deductions for depreciating assets will no longer require a separate and dedicated work area
• taxpayers living in the same household can both claim WFH expenses if they meet all requirements.

What does the 67c per hour include?

• energy
• internet
• mobile
• stationery
• computer consumables.

“This means you cannot claim an additional separate deduction for any of these expenses. For example, if you use your mobile phone when you are working from home and when you are working from somewhere other than your home, your total deduction for mobile phone expenses for the income year will be covered by the hourly rate of 67c per hour,” the ATO said.

Theses changes have yet to come into place and the ATO is asking for submissions from interested parties.

As always, it is recommended to keep records of all related expenses.

If you have a queries on how the WFH tax deduction changes affect you, please speak with your AFS accountant on 03 5443 0344.