The ATO has updated the hourly rate taxpayers can use to determine deductions for home office expenses from 45 cents to 52 cents per hour for individual taxpayers, effective 1 July 2018 (i.e.. from the 2019 income year)
According to the ATO’s recently updated PS LA 2001/16, individual taxpayers who claim deductions for either wok or business-related home office running expenses may either:
· Claim a deduction for the actual expenses
· Incurred; or
· Calculate the running expenses at the rate
· 52 cents per hour
Taxpayers who use the rate per hour method to claim a deduction for home office running expenses only need to keep a record to show how many hours they work from home.
This reduced substantiation requirement can be recorded either:
· During the course of the income year; or alternatively
· They can keep a representative four-week diary (where their work from home hours are regular and constant)