July 2024 Newsletter

Please click on the following link to view this month's newsletter for July 2024. We would like to highlight the following articles:-

Tax time 2024: claiming working from home expenses

There are two methods for calculating work from home expenses: the actual cost method and the fixed rate method. Both methods require keeping detailed records and follow the ATO’s three golden rules: the money must have been spent by the taxpayer without reimbursement, the expense must be directly related to earning their income, and the taxpayer must have a record to prove the expense.

Fixed Rate Method - How it works

You can claim 67 cents for each hour you work from home during the relevant income year. The rate includes the additional running expenses you incur for

home and mobile internet or data expenses
mobile and home phone usage expenses
electricity and gas (energy expenses) for heating, cooling and lighting
stationery and computer consumables, such as printer ink and paper.

You can separately claim a deduction for the work-related use of technology and office furniture such as chairs, desks, computers, bookshelves.

To claim your working from home deduction using this method, you must keep a record of the number of actual hours you work from home during the entire income year – for example, a timesheet, roster, diary or other similar document.

Actual Method - How it works

You work out your deduction by calculating the actual additional expenses you incur when working from home. This includes expenses you incur for:

the decline in value of depreciating assets – for example, home office furniture (desk, chair) and furnishings, phones and computers, laptops or similar devices.
electricity and gas (energy expenses) for heating, cooling and lighting
home and mobile phone, data and internet expenses
stationery and computer consumables, such as printer ink and paper
cleaning your dedicated home office.

Where you incur running expenses for both private and work purposes, you need to apportion your deduction on a fair and reasonable basis. You can only claim the work-related portion as a deduction.

ATO focuses on rental property owners’ tax returns

The ATO will continue to turn the spotlight on rental property owners and inflated claims to offset increases in rental income. The most common mistakes include overclaimed deductions; inadequate documentation to substantiate claimed expenses; and not understanding what expenses can be claimed and when.The ATO cross-checks data from a range of sources including banks, land title offices, insurance companies, property managers and sharing economy providers.

Please do not hesitate to contact us if you have any queries in relation to your tax and accounting matters.