Your top 5 work from home questions answered

1. What is the fixed rate for Tax Time 2024?

The fixed rate for the 2023–24 income year is 67 cents per hour worked from home. This rate can change annually, so it’s crucial to check the latest information on the official website. Utilising the home office expenses calculator is recommended for accurate claims.

2. Is there a minimum number of hours to qualify for a working from home (WFH) deduction?

No, there’s no minimum number of hours required to claim a WFH deduction. However, to be eligible, you must:

• Be working from home to fulfill your employment duties, not just performing minimal tasks like checking emails or taking calls.
• Incur additional running expenses due to working from home.
• Maintain records showing you incurred these expenses.

3. What types of records do taxpayers need to prove their ‘total hours worked from home’?

To claim a deduction using the fixed rate method, you must keep records of all hours worked from home between 1 July 2023 and 30 June 2024, including start and finish times for each session. Acceptable record formats include diaries, spreadsheets, rosters, or timesheets. These records must be made at the time of work or shortly afterward, as estimates or representative records are no longer accepted.

4. What is a practical way to prove work use of my phone?

Under the fixed rate method, separate phone call and data usage deductions can’t be claimed as these are included in the fixed rate. For those using the actual cost method, you need to determine the work-related percentage of phone and data usage reasonably. Keeping a continuous 4-week diary is the easiest way to calculate this percentage. This record can then be applied to the entire income year.

5. Can taxpayers claim rent as part of the actual cost method if they work from home full time?

Generally, taxpayers working from home can’t claim occupancy expenses like rent, insurance, or mortgage interest unless they have a designated ‘place of business’ in their home. If planning to claim these expenses, you should be aware of potential capital gains tax (CGT) implications for your home.

Contact our office on (03)9848 5933 if you need assistance on any of your work-from-home deductions in the 2023-24 tax year.

Source: www.ato.gov.au