The Australian Taxation Office (ATO) has updated its
approach to how you claim expenses for working from home.
The ATO has ‘refreshed’ the way you can claim deductions for the costs you incur when you work from home. From 1 July 2022 onwards, you can
choose either to use a new ‘fixed rate’ method (67 cents per hour), or the ‘actual cost’ method depending on what works out best for your
scenario. Either way, you will need to gather and retain certain records to make a claim.
The first issue for claiming any deduction is that there must be a link between the costs you incurred and the way you earn your income. If
you incur an expense but it doesn’t relate to your work, or only partially relates to your work, you cannot claim the full cost as a
deduction.
The second key issue is that you need to incur costs associated with working from home. For example, if you are living with your parents and
not picking up any of the expenses for running the home then you can’t claim deductions for working from home as you have not incurred the
expenses, even if you are paying board (the ATO treats this as a private arrangement).
Let’s take a look at the detail:
We provide strategic business and tax advisory, underpinned by our expertise in financial planning to ensure we develop financial structures that are smart and well considered.
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When an accountant talks about Tax Planning what do they actually mean? As part of our tax advisory service we always offer strategic tax advisory, but it's important to note there are a lot of things that accountants cannot implement after June 30.
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30 March 2023 // 12:30pm
Gen Z, it’s time to level up your financial literacy. This is the stuff that you didn’t learn in school. Get ready to learn the ins and outs
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The amount of money that can potentially hold in a tax-free retirement account, will increase by $200,000 on 1 July 2023.
A consultation paper released by Treasury has sparked a national debate about the role, purpose and access to superannuation.
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The Australian Taxation Office (ATO) has updated its approach to how you claim expenses for working from home.
A chattel mortgage is a popular way for businesses to purchase large assets such as machinery and vehicles.
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ONLINE WEBINAR
23 February 2023 // 12:30pm
In our upcoming webinar we'll be diving into some common exit
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Tax planning is more than just a financial necessity—it's a strategic advantage for businesses of all sizes. By proactively managing your tax strategy, you can significantly reduce your liabilities, enhance cash flow, and ensure full compliance with ever-evolving tax regulations.
