Proposed work-from-home tax changes would mean lower deductions or more paperwork

The ATO says the draft compliance measure of 67 cents as a fixed rate for work from home expenses is an attempt ‘to better reflect contemporary working arrangements’. Photograph: Westend61/Getty Images

People working from home would lose hundreds of dollars in tax deductions if new draft guidelines released by the Australian Tax Office are adopted.

Under the proposed changes, those working from home would not be able to claim expenses such as internet, electricity and mobile separately using the popular shortcut method, which sets out a flat rate for hours worked at home, rather than calculating the actual costs.