New fixed rate method is introduced

From the 2022/2023 financial year onwards, the short cut method is no longer available. A new fixed rate method is introduced. This new fixed rate allows you to cover any energy expenses, phone, internet, and consumable expenses whilst working from home. With this new method, taxpayers are now required to provide a record of actual hours worked from home and the previously accepted logbook method can no longer be used as supporting evidence.

Below is a comparison between the new and old fixed rate method

	New Method From 1 July 2022	Old Method Prior to 1 July 2022
Rate per hour	67c	52c
Expenses included in the rate	Electricity and gas Home and mobile internet Home and mobile phone usage Home office consumables	Depreciation Electricity and Gas Cleaning Costs
Expenses excluded in the rate	Depreciation	Home and mobile internet Home and mobile phone usage Home office consumables
Record keeping requirement	Records of actual WFH hours Receipt of expenses incurred	Either records of actual hour or use logbook method Receipts of expenses incurred

Please contact our office if you would like to know more about how this may impact you.