As the end of the tax year is fast approaching, this message runs through some important tax changes for 30 June 2024.

It is essential for you to review this information for opportunities available to you this tax season.

Changes to car expenses

For the 2023-24 income year the cents per kilometre rate has gone up from 78 cents to 85 cents per kilometre. If you have travelled on "business" for less than 5,000 km in the income year, you are not required to maintain substantiation documents if you are using the cents per kilometre method.

Although written evidence is not required, the ATO expects you to be able to demonstrate that your car travelled on business and how the number of kilometres were calculated for the year.

Deductions for working from home

If you are working from home, there are only two ways to claim deductions for working from home expenses:

- the fixed rate method, or

- the actual cost method.

The fixed rate method is 67 cents per hour and may be used if you incur running expenses due to working from home. A dedicated home office area is not required to use this method. The hourly rate accounts for energy (electricity and gas), phone, internet, stationery and consumable expenses.

Expenses such as decline in value of assets used while working from home, repairs and maintenance of these assets and home office cleaning costs can be claimed separately.

To apply the fixed rate method, you must maintain a record of:

- all the actual hours worked from home from 1 July 2023 to 30 June 2024. This can be in the form of timesheets, rosters or a diary for the full income year, and

- at least one expense incurred, for example at least one phone or electricity bill.

The actual cost method hasn't changed and allows you to claim a deduction for the actual expenses incurred as a result of working from home. The actual cost method requires detailed calculations and records.

If you need to know more about the items discussed here, please contact our office for more information.