Great news to telecommuters on the claims revision in home office expenses!

The Australian Tax Office (ATO) has updated the hourly rate taxpayers can use to determine deductions for home office expenses from 45 cents to 52 cents per hour for individual taxpayers, effective 1 July 2018 (i.e., from the 2019 income year).

According to the ATO’s recently updated PS LA 2001/6, individual taxpayers who claim deductions for either work or business-related home office
running expenses may either:

  • claim a deduction for the actual expenses incurred; or
  • calculate the running expenses at the rate of 52 cents per hour.

Taxpayers who use the rate per hour method to claim a deduction for home office running expenses only need to keep a record to show how many hours they work from home. This reduced substantiation requirement can be recorded either:

  • during the course of the income year; or alternatively
  • they can keep a representative four-week diary (where their work from home hours are regular and constant).

Telecommuters are welcomed to give a call to our firm to clarify the revision said. Should you require our service to keep the hassle off from your back, just to allow you more focus in your works, we are happy to offer you adequate service in supporting your career building while we take care of the paperwork on taxation. Call us today and open up the potential slingshot in advancing your business with us at Verus Accountants and Advisors.