Working from home deduction changes for 2022-23

From 01/07/2022, the fixed rate method for calculating your deduction for working from home expenses has been revised.

Taxpayer can still choose either ‘actual cost’ or ‘fixed rate’ method to claim working from home deduction.  However, notable changes have been made to the ‘fixed rate’ method.

Revised fixed rate method:

From 1 March 2023 onwards, taxpayers need to record the actual total number of hours they work from home for the entire income year.   A representative record is no longer accepted.

The cents per work hour has increased from 52 cents to 67 cents.

You can claim 67c for each hour your work from home during the relevant income year. The rate includes the additional running expenses you incur for:

• home and mobile internet or date expenses

• mobile and home phone usage expenses

• electricity and gas ( entery expenses) for heating, cooling and lighting 

• stationery and computer consumables, such as printer ink and papare

If you are using this method, you can't claim an additional separate deduction for these expenses. 

Expenses that can be separately claimed include the decline in value of assets while working from home such as office furniture, the repair and maintenance of these assets and the costs associated with cleaning a home office.

The revised fixed rate method does not require taxpayers to have a dedicated home office space to claim working from home expenses.

 Actual cost method

The ‘actual cost’ method has not changed. Taxpayers can claim the actual work-related portion of all running expenses.

This includes expenses you incur for:

• the decline in value of depreciating asset

• electricity and gas

• home and mobile phone, data and internet expenses

• stationery and computer consumables such as print ink and paper

• cleaning your dedicated home office

Where you incur running expenses for both private and work purposes, you need to apportion your deduction and you can only claim the work-related portion as a deduction.  

A dedicated home office is needed for calculation of work-related expenses percentage.

Taxpayers need to keep detailed records for all working from home expenses being claimed including all receipts, bills and similar documents as well as a record of how taxpayer have calculated the work-related and private portion of their expenses.

For Chinese version, please go to 2023财年居家办公税法变动.