ATO to launch publicity campaign for final work-from-home guidance
The Australian Tax Office (ATO) is launching a publicity campaign to alert taxpayers to changes in work from home (WFH) expense deductions, which took effect on January 1st, 2023.
In November 2022, the ATO released a draft of its guidance on WFH expenses, which received criticism from the tax industry due to "opaque" calculations behind the revised fixed rate of 67c and the "demanding" record-keeping requirements. The final guidance, known as PCG 2022/D4, requires more stringent record-keeping and many taxpayers are thought to be unaware of the changes.
"We will be undertaking a range of communications through various channels that will coincide with the publication of the final PCG later this month," the Tax Office stated. "Communication after publication of the final PCG will be ongoing and continue into the period for lodgement of 2023 income tax returns."
The ATO is finalizing the WFH rules after consultation with the tax industry and will be developing supporting materials, including web content and a fact sheet, to assist taxpayers and their advisers.
Critics of the draft guidance, such as the director of tax communications at H&R Block, Mark Chapman, raised concerns that the "compliance obligations are high" and the "amount that can be claimed is low." CPA Australia also called for a legislated fixed rate method for WFH expenses to improve certainty and clarity for both the ATO and taxpayers.
The ATO stated that the consultation process has resulted in updates to the final PCG and that a compendium of comments received will also be published. With the ATO's publicity campaign, the final guidance and supporting materials will help ensure that taxpayers are aware of the changes and have the information they need to make informed decisions about their WFH expenses.
