Working Out Your Work from home deductions This Tax Time

To be eligible for WFH deductions, you must be genuinely working from home to fulfil your employment duties—not just occasionally checking emails or taking the odd call. You must also be incurring additional running costs as a result of working from home. These costs may include:

• Electricity for heating, cooling, and lighting
• Internet and data usage (home or mobile)
• Phone bills
• Stationery and office supplies

How to Calculate Your WFH Deductions

You can choose between two methods:

1. Fixed Rate Method

This method allows you to claim 70 cents per hour worked from home for the 2024–2025 income year. It covers expenses like electricity, phone, internet, stationery, and office supplies.

To claim this:

• Track your actual WFH hours (either with a diary/timesheet for a representative 4-week period or for the full year)
• Keep records of your expenses
• Don’t claim separate deductions for items already covered under the fixed rate

2. Actual Cost Method

This method requires more detailed record-keeping but may result in a larger deduction if your expenses are significant. You’ll need to:

• Track your total WFH hours
• Keep receipts, bills, and records showing how the expenses relate to your work
• Apportion shared expenses between personal and work use

What You Can’t Claim

There are some common traps when it comes to WFH deductions. You can’t claim:

• General household items like tea, coffee, or toilet paper
• Items provided by your employer (e.g., laptops, phones)
• Any expenses that have been reimbursed by your employer

Additional Work-Related Claims

Outside of the WFH methods above, you can also make separate claims for items like:

• Office furniture (chairs, desks, shelves)
• Work-related technology (monitors, printers, keyboards)
• Repairs and maintenance of your home office equipment

For items over $300 that are used for both work and personal purposes, you’ll need to calculate the work-related portion and claim that percentage over the asset’s effective life (depreciation). For items costing $300 or less, you can claim an immediate deduction in the year of purchase.

Would Your Claim Pass the Pub Test?

The ATO requires that any work-related expense you claim must directly relate to earning your income. Each year, some claims push the limits—and get denied. For example:

• A mechanic tried to claim an air fryer, microwave, two vacuum cleaners, a TV, and gaming equipment.
• A fashion industry professional attempted to claim over $10,000 in designer clothing and accessories, arguing it was necessary to “look presentable” at work events.

When in doubt, check the ATO website or speak to a registered tax agent before including anything questionable in your return.