11 Apr 2023

How to Claim for Working from Home Expenses

Working from home is becoming the norm for many people. It’s important to think about the deductible expenses that you may be able to claim when working from home and make sure you include them in your tax return.

To claim working from home expenses, you must:

  • be working from home to fulfil your employment duties, not just carrying out minimal tasks, such as occasionally checking emails or taking calls
  • incur additional running expenses as a result of working from home
  • have records that show you incur these expenses.

The ATO have 2 methods available to calculate your claim, revised fixed rate method or the actual cost method.

Revised Fixed Rate Method

From 1 March 2023 the ATO will not accept an estimate based on hours worked. You must keep a record of hours worked and a diary to show work usage of assets.

You no longer need a dedicated work area or separate room used as an office. The revised rate of 67 cents per work hour covers your running expenses.

Expenses included in the revised fixed rate are:

  • data and internet
  • mobile and home phone usage
  • electricity and gas
  • computer consumables (e.g. printer ink)
  • stationery.

You can claim a separate deduction for the decline in value of assets used while working from home, such as computers and office furniture and the repairs and maintenance of these assets. You can claim for cleaning, only if you have a dedicated home office.

See the ATO guide.

ATO Home Office Actual Cost Method

To use the actual cost method, you claim for the actual expenses incurred by working from home. This method does require detailed calculations and records. If you plan to use this method, see ato.gov.au/home

Talk to us about calculating your WFH deduction. We are here to help.