Post Pandemic, working from home has become somewhat of the norm for a certain percentage of workers across Australia, and the Australian Tax Office has taken this into account offering tax relief by updating the rules on what you can and cannot claim in the next financial year.

The ‘fixed rate’ you are entitled to claim to cover general working from home expenses has increased from 52cents an hour to 67cents an hour and you no longer need a dedicated home office in order to claim this.

The ATO has revised the rate taking into account costs such as home internet, phone bills, and home energy costs.

Currently Australia’s income tax system allows you to exclude a variety of work-related expenses from your ‘taxable’ income, effectively making those expense tax free, including expenses incurred by people who work from home.

There are two ways you can claim these expenses.

• Keep detailed receipts of your actual costs and claim them precisely

• Or you can claim a fixed rate per hour of work from home.

It is this fixed rate that is changing after ATO reviews.

If you wish to claim the fixed rate you will no longer be able to claim those internet, phone or energy costs separately.

The ATO says that for the 2022/23 financial year up to the end of February, a diary covering a few typical weeks will suffice for proof of work, but as of March 1 you will need to track your hours and in great news for some, you will now no longer need a dedicated home office as was required previously, in order to claim.

There are a few work-from home related expenses NOT included in the new fixed rate which can be claimed separately along with the fixed rate.

Balinda Baker works from her home in the Nyngan area. PHOTO SUPPLIED.

These include the cost of repairing and maintaining work-related assets and the cost of cleaning a dedicated home office.

Also included are the value of work-related assets, assets under $300 can be claimed immediately.

Assets over $300 can be claimed over time as they ‘depreciate’ (decline) in value – the ATO Website helps with more on this.

Checking an email or taking a call now and then will not prove you are eligible – you must be genuinely be completing your regular employment duties from home in order to be able to claim.

Balinda Baker of Nyngan not only works from home but is a Tax Agent in the district.

With a family of three children and living on a property south of Nyngan the new rules will benefit her and her family, and she offered this advice.

"Post COVID, the ATO have made some changes to working from home allowances," said Mrs. Baker.

"On the whole there are more costs you can claim and they have increased the statutory rates too."

"The best advice is to keep a diary of what time you work from home. It's likely there will be more audits focusing on these as more staff are offered working from home arrangements," said Mrs. Baker.