2025 Tax Planning
PCG 2023/1 outlines the ATO’s new method (‘the fixed-rate method’) for calculating additional running expenses while working from home, which has applied from 1 July 2022.
NB: This guideline was recently updated to increase the work from home fixed rate from 67 cents to 70 cents per hour from 1 July 2024.
The fixed-rate method allows taxpayers to claim at a rate of 70 cents per hour for the following additional running expenses for working from home:
- energy expenses (electricity and gas) for lighting, heating, cooling, and electronic items used while working from home;
- internet expenses;
- mobile and home phone expenses; and
- stationery and computer consumables.
However, PCG 2023/1 does not cover occupancy expenses relating to a home, such as rent, mortgage interest, property insurance and land tax.
Taxpayers are not required to use the above fixed-rate method — as from 1 July 2022, they can instead continue to claim the actual expenses they incurred as a result of working from home and keep all records necessary to substantiate their claim.
Our personalised, tailored tax approach means we understand what you’re looking to achieve and focus on building a plan that’s right for your business. Call Omnis in West Perth on 08 9380 3555.
