Covid gone and so are the tax deductions.
The method to quickly create a tax deduction for the Covid era is changing. The “Shortcut Method” is no longer available from the 1st July 2022.
This means that for your next income tax return (2022-23) you have to approach your home office expenses a little differently.
The Actual Method for Home Office
This remains unchanged from previous years. This method involves full documentations of all costs such as energy, internet, telephone, stationery and computer costs. And then proportioned accordingly.
The Revised fixed-rate method for Home Office
Incorporates ALL costs associated with your Home Office and is levied at 67 cents per hour of work from home. Note that it’s not sufficient to merely say two days per week is my work from home hours when the times you work from home are not consistent throughout the year. Many people will need to create a log of daily hours to validate this claim.
Don’t forget to get our Deduction Grabber App to record your costs to validate your tax deductions.
Scan the QR code here to get cracking.
