If you operate some or all of your business from home, you may be able to claim the business-use portion of expenses you incur. For example:
-
occupancy expenses (such as mortgage interest or rent, council rates, land taxes and home insurance premiums)
-
running expenses (such as electricity, gas, phone, internet, stationery, cleaning and the decline in value of assets).
The temporary shortcut method ended on 30 June 2022, and the fixed-rate method has been revised.
For the 2022–23 income year, the revised fixed rate is 67 cents per hour. You no longer need to:
-
have a dedicated home office space
-
work out the business-use portion of phone, internet, gas and electricity separately.
You can also claim the decline in value of depreciating assets and equipment separately, including any repairs and maintenance costs.
If you want to use the revised fixed rate method, you need to keep a record of all hours worked from home for the entire income year (for example, on a timesheet, roster or in a diary).
If you haven’t kept a record of all hours worked from home, you can use a representative record of your hours from 1 July 2022 to 28 February 2023. You will need a record of the total number of your actual hours from 1 March to 30 June 2023.
Your business structure can also affect the method you can use and the expenses you can claim.
Remember, your tax professional or BAS agent can help you with your tax. Contact us on (03) 5021 1235 if you have any questions.
Source: ato.gov.au March 2023
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/Business/Small-business-newsroom/General/New-changes-to-home-based-business-expenses/.
Important:
This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.
