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Home-based SMEs and those WFH can claim higher tax expenses this year

The ATO has increased the fixed-rate running cost: home-based businesses can claim a little more on expenses.

The Australian Tax Office has increased the rate for claiming expenses under the fixed-rate method.

Those working from home or conducting a home business can now claim 67c per hour, up from 52c.  While not a large increase, home-based businesses are encouraged to review and apply the increase where they are using the fixed-rate method.

The revised fixed rate of 67c per working hour:

  • covers running expenses including electricity, gas, stationery, computer consumables, internet and phone
  • no longer requires an office or area of the home set aside exclusively for business
  • allows the business to use a portion of the decline in value of depreciating assets and equipment, including their repairs and maintenance costs, to be claimed separately.

There are record keeping changes that must be made from 1 March 2023 in order to use the revised fixed-rate method for the 2022–23 income year.

Those who choose to use the revised fixed rate method need to keep a record of all hours worked from home for the entire income year (such as timesheets, roster or diary).


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