ATO announces new rules around WFH

We knew of the changes around the claiming of working-from-home costs but The ATO has moved the revised work-from-home (WFH) start date to 1 March 2023. The fixed-rate deduction of 67c per hour has remained unchanged but more stringent record-keeping rules have been rolled out. A warning to those looking at using this fixed rate calculation you are advised to record every hour you work from home. From 1 March the ATO will not accept estimates or diary entries. Records such as rosters, timesheets, and employer access logs are examples of what will be required. Taking a work call and checking the occasional email does not meet with a description of WFH.

Taxpayers are warned to be diligent when keeping records. Those claiming 67c an hour will also need to keep bills for costs included in the fixed rate, which covers electricity, phone, internet, stationery, and computer consumables.

On the plus side, you no longer need a dedicated home office to use the fixed rate method.

We can expect to see the ATO launching an information campaign aimed at educating the general public on the changes.

This may see the return to the office as a more convenient option. We will await the final information from the ATO outlining all the particulars but this could be a good time to start thinking about the changes and preparing for how best to keep records from 1 March 2023.