Who Can Claim Work-From-Home Expenses?
You can claim if you work from home to earn your income. This could be because your employer allows remote work, you run your own business, or you have a dedicated home office. You generally cannot claim if you’re simply checking emails occasionally without incurring additional running costs.
ATO Methods for Calculating Deductions
1. Revised Fixed Rate Method (from 1 July 2022)
Claim a fixed rate per hour (set by the ATO, currently $0.67/hour) for all eligible expenses, including electricity, internet, phone, and stationery. You must keep records of hours worked and receipts for expenses.
2. Actual Cost Method
Calculate the actual work-related portion of each running cost. This can produce higher deductions if your costs are significant, but requires detailed records and calculations.
3. Shortcut Method (ended 30 June 2022)
This temporary COVID-era method is no longer available, but can still be used for relevant past years if you have records.
What You Can Claim
- Electricity for heating, cooling, and lighting your workspace
- Internet and phone costs
- Stationery and office supplies
- Computer consumables (e.g., printer ink)
- Depreciation on office furniture and equipment
- Cleaning costs for your home office
- Occupancy expenses (rent, mortgage interest, rates) only if you have a dedicated business space at home
Record-Keeping Requirements
To substantiate your claim, keep:
- Timesheets, rosters, or diaries showing hours worked from home
- Receipts or bills for all claimed expenses
- Apportionment records if expenses are partly personal
- Photos or floor plans if claiming occupancy expenses
Tip: Digital record-keeping apps can make this process easier and prevent lost receipts.
Common Mistakes to Avoid
- Claiming without keeping evidence of hours worked
- Including non-work personal expenses
- Double-claiming the same expense under multiple methods
- Claiming occupancy expenses without meeting ATO’s strict home office criteria
Example Calculation (Revised Fixed Rate Method)
If you work from home 20 hours per week for 48 weeks:
- 20 hours × 48 weeks = 960 hours
- 960 hours × $0.67/hour = $643.20 deduction
This covers electricity, internet, phone, and stationery. Separate claims can still be made for depreciation of equipment.
Make your work-from-home claim count
We’ll help you choose the method that gives you the best legal deduction while keeping you fully compliant with ATO rules.
Start My Tax Return Book a CallFAQs
Can I claim rent if I work from home?
Only if your home is your principal place of business and you meet ATO criteria for a dedicated work area. This may also affect CGT when you sell your home.
Can I use the actual cost method for some expenses and fixed rate for others?
No. You must use one method for all running expenses, but you can still claim separate deductions for depreciating assets under either method.
What if I only work from home occasionally?
You can still claim for the hours worked, but your total deduction will be smaller. Accurate records are essential.
Are my work-from-home claims likely to trigger an audit?
Not if they’re reasonable, consistent with your work pattern, and supported by proper records. Large or unusual claims may draw attention.
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Start Now Speak to an ExpertGeneral information only. This article is not financial or tax advice. Consider your circumstances and seek advice from a registered tax agent or qualified professional before lodging your return.