Removing the Self Education expenses threshold
The ATO implemented a requirement of reducing your allowable work-related self-education expenses by $250 to calculate your deduction, however for the upcoming 2022-23 tax income year, this has now been removed.
These changes will also apply to the Fringe Benefits Tax year starting on April 1, 2023.
The expenses of Self-Education were reported at D4 of your Individual Income Tax Return (IITR), however now in the D4 section you will no longer see a Non-deductible category E for work-related Self-Education expenses which applies to MyTax and MyDeductions within the ATO app.
Although you no longer need to keep records of any non-deductible self-education expenses, you still must continue to maintain records of your deductible self-education expenses.
Working From Home
The ATO has revised the Fixed Rate Method for calculating your deduction for working from home expenses.
This has been revised to:
• Increase the rate per work hour that you can claim when you work from home
• change the expenses the rate covers
• change the Record Keeping Requirements
• Remove the requirement of home office set aside from work
If you are also using Office Furniture and Technology, you can separately claim a deduction as they are depreciating assets and are being used for work-related features.
Low- and Middle-Income Tax Offset
The low- and middle-income tax offset ended on 30 June 2022. It is not available for the 2022–23 income year.