The ATO has issued new draft guidelines replacing the existing fixed rate method.
Key Points
· Replaces existing 52c fixed rate method
· Applicable from 1st of July 2022
· In place for expiring COVID-19 short cut 80c method
· New rate is 67c per hour
· Includes all expenses like Electricity, Gas, home office cleaning, and mobile and internet costs
Eligibility
· Work from home to fulfil your employment needs or to run your business
· Incurring additional running expenses
· Keep and retain records of time spent
Pros
· Better rate than the previous fixed rate
· Providing long-term certainty after the Covid-19 rate has expired
Cons
· Needs detailed documentation for hours spent for the entire duration (previously only a sample record was required)
· Includes mobile and internet costs as well, so cannot claim separately for them
· Does not consider the recent high inflationary scenario where energy costs have soared more than 50%
· 16.25% lesser than the COVID-19 rate
