The ATO has updated its guidelines for claiming work-from-home expenses, making things a bit simpler for many people. Under PCG 2023/1, there’s now a fixed-rate method you can use to claim additional running costs when you work from home. From 1 July 2024, the fixed rate has increased from 67 cents to 70 cents per hour.

Here’s how it works: for every hour you work from home, you can claim 70 cents. This rate covers a range of common expenses, including:

• Electricity and gas for lighting, heating, and cooling
• Internet costs
• Mobile and home phone expenses
• Stationery and computer consumables (like printer ink and paper)

It’s important to note that this fixed-rate method doesn’t cover occupancy costs such as rent, mortgage interest, property insurance, or land tax-those aren’t included in this calculation.

You don’t have to use the fixed-rate method if it doesn’t suit you. If you prefer, you can still claim the actual expenses you’ve incurred from working at home, as long as you keep detailed records to back up your claims.

So, in short: you now have the option to claim 70 cents for every hour you work from home to cover your running costs, or stick with the actual expenses method if that gives you a better result. Just remember to keep good records, whichever method you choose.

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