Understanding what you can claim when you work from home
Updated on 16 October 2024 | 2 minute read
If you work from home, there are some tax deductions you may be able to claim.
Two ways to claim work-from-home deductions
Since July 1, 2022, the ways you claim work-from-home tax deductions have changed. It means you may need to keep new records for your tax return.
Actual cost method
With this approach, you track the actual expenses you have from working at home.
Fixed-rate method
Here's how it works:
- You can claim a set amount per work hour for extra running costs. For example, a portion of your electricity bill.
- You can also claim separately for things like the depreciation of assets. So it might be a work printer or laptop, if your job doesn’t provide it.
- You don’t need a dedicated home office to claim these deductions.
What you can claim with the fixed-rate method
The fixed rate covers things like:
internet
electricity and gas costs
phone costs
stationery
computer add-ons like ink cartridges, software programs and power adaptors.
If you use this method, you can’t make another separate claim for these costs. But you can claim:
- The work-related part of the decline in value of things like computers and office furniture used for work.
- The work-related part of repairs and maintenance of these items.
- In some cases, costs for cleaning a dedicated home office.
You need to keep records of all the hours you work from home, for the whole year you worked.
Are you eligible?
To claim work-from-home deductions:
You need to have extra costs because you work from home. You can’t claim everyday items like tea or coffee, or things your employer gives you, like laptops or mobile phones.
You need to have extra costs because you work from home. You can’t claim everyday items like tea or coffee, or things your employer gives you, like laptops or mobile phones.
You must keep records that show you have these costs.
If you have things for both work and personal use, you can only claim the work-related part.
Please note: Australian Retirement Trust is not a tax agent. We recommend you talk to a registered tax adviser for professional advice.
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