Australia Tax Agency Announces Revised Fixed Rate Cost Method for Deducting Home-Based Working Expenses

The Australian Taxation Office Feb. 16 announced revisions to the fixed rate cost method, applicable from July 1, 2022, for calculating deductions of expenses incurred when working from home. The announcement includes: 1) an increase in the hourly deduction rate to A$0.67 (US$0.46), from A$0.52 (US$0.36); 2) clarification that the revised fixed rate applies to energy expenses, phone usage, internet, stationary, and computer consumables; 3) identification of expenses that can be claimed separately, including declines in the value of certain assets used while working from home, repair and maintenance costs, and cleaning costs; and 4) recordkeeping requirements for claiming deductions. ...