Home office expenses rate increased

February 2019

Verification approaches for home office running expenses and electronic device expenses

The ATO has increased the hourly rate for home office running expenses from 45 cents per hour to 52 cents per hour, effective from 1 July 2018.

This rate is relevant where an individual decides to use the ATO's safe harbour rate as opposed to keeping records and determining the work-related proportion of actual expenses incurred.

Individuals who choose to apply the hourly rate method only need to keep a record to show how many hours they work from home. This could be done over the course of the income year, or over a four-week representative period if the individual's work from home hours are regular and constant.

The hourly method incorporates all of the items that a taxpayer can claim as a home office running expense including lighting, heating, cooling, cleaning costs, and depreciation of home office items such as furniture and furnishings in the work area.

To find out more, contact us on 02 9957 4033 or email us here.

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This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.

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