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Working From Home - New ATO Tax Guidance

The ATO has recently released a tax guidance (PCG 2023/1) for claiming tax deductions for working from home.

You need to be aware of these changes so that you can keep the appropriate records to maximise your tax claims in your 2023 Tax Return.


From 1 July 2022, the ATO has explained that taxpayers who are working from home can claim deductions based on:

A key change is that you do not need to have a separate home office or dedicated work area set aside in your home in order to rely on the fixed rate method.

Also, if more than one individual is working from home at the same time, each individual will be able to apply the fixed rate method if they each meet the requirements listed above.

To be eligible to claim tax deductions for working from home expenses, you must:

Revised Fixed Rate Method

The revised fix rate method:

Actual Cost Method

The actual cost method allows you to claim a tax deduction for the actual expenses you incur as a result of working from home.

Using this method, you are required to keep an invoice/receipt for every expense you claim.

Expenses You Can’t Claim

The ATO has stated that you can’t claim a tax deduction for:


You need to keep the following records to prove your fixed rate method working from home tax deductions for the 2023 financial year:

To claim your working from home deduction using this method, you must keep:

If you haven't been keeping a record of the actual hours you worked from home, for the 2023 income year only, you must be able to provide both:


To use the revised fixed rate method and claim 67 cents per hour for working from home expenses in your upcoming 2023 Tax Return, you will need to IMMEDIATELY start to keep a record of your actual hours working from home.

A record of your hours for the income year can be in the form of:

You must also keep evidence for each of the additional running expenses that you incurred. The documents you need to keep in order to demonstrate that you have incurred additional running expenses must show what the expense is and that you incurred the expense.

For energy, mobile and/or home telephone and internet expenses, you must keep one monthly or quarterly bill. If the bill is not in your name, you will also have to keep additional evidence showing you incurred the expenses; for example, a joint credit card statement showing payment or a lease agreement showing you share the property, and therefore the expenses, with others.

For stationery and computer consumables, which are occasional expenses, you must keep one receipt for each item purchased.

Please feel free to contact our office and speak with one of our accountants if you need any assistance with this so we can help you to maximise your tax deductions in your 2023 and future year Tax Returns.

Contact Us Today.

Whatever your requirements, we can help you find the solution.

Unit 6, 1 Sigma Drive Croydon South, Australia VIC 3136

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