Work from Home Running Expenses Deduction

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


· Work from home to fulfil your employment needs or to run your business

· Incurring additional running expenses

· Keep and retain records of time spent


· Better rate than the previous fixed rate

· Providing long-term certainty after the Covid-19 rate has expired


· 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