Maximize Your Work From Home Deductions: What You Need to Know for Tax Time

So, you worked from home during the 2025 financial year and are wondering what you can claim? This blog is here to help.

Firstly, to claim working from home (WFH) expenses you must:

• Be working from home to fulfil your employment duties and not just carrying out minimal tasks such as occasionally checking emails or taking calls; and

• Incur additional expenses as a result of working from home

To claim a deduction for expenses you incur when WFH you need to:

• use one of the methods set out below to calculate your deduction; and

• keep records that show you incurred the expenses.

There are two different methods available for you to choose from:

• Revised fixed rate method

• Actual cost method

Revised Fixed Rate Method

You can use this method if you:

• incur additional running expenses as a result of working from home

• be working from home to fulfil your employment duties, not just completing minimal tasks (like checking work emails)

• keep records at the time you work to prove you incur the cost.

In welcome news you no longer need a dedicated home office - Woohoo for you!

What is the rate?

The claim is a fixed rate of 70 cents for each hour you worked from home.

What does this rate include?

• Data and internet

• Mobile and home phone usage

• Electricity and gas for heating, cooling and lighting

• Computer consumables

• Stationery

What can I claim in addition to this rate?

• decline in value of depreciating assets other than home office furniture and furnishings used for work purposes – for example, computers and laptops.

• repairs & maintenance of these assets

• cleaning (only if you have a dedicated home office)

Actual Cost Method

Who can use this method?

If you have kept records which show the amount you spent, depreciating assets you buy and use while working from home and or work-related use for your expenses and depreciating assets

How does it work?

You can work out your deduction by calculating the actual expenses which may include the following expenses:

• Data and internet

• Mobile and home phone usage

• Heating, cooling and lighting

• Computer consumables and stationery

• Decline in value of depreciating assets

• Cleaning expenses (only if you have a dedicated home office)

How do I calculate my ‘actual expenses’? If you have a designated home office, you can apportion the size of the office relevant to your total house size. For example, if your home office covers 15% of your home you can claim 15% of your heating, cooling and lighting charges.

For expenses such as phone and internet, you apportion the work-related component of these expenses. For example, if your internet charges for the year are $500 and your work-related % is 80%, you can claim $400 under this method.

What records do I need to keep?

• Receipts, bills, invoices showing supplier, amount, description, date paid, etc

• Evidence of your personal and work related use

• You must record of the number of actual hours you work from home during the income year

• Diary for a representative four-week period to show your usual pattern of working at home

One last FAQ Can I claim occupancy expenses such as rent, mortgage interest, rates and house insurance?

Only if your home is your place of business and you have a designated home office area. Note that there are capital gains tax considerations in using your home to produce income and you should talk to us before considering this option as if you own your home you may lose a portion of the main residence CGT exemption!!!!!

So there it is, wrapped up into a nutshell for you. As always if you have questions then please reach out to one of our oh so cool not nerdy at all team members or click on this link

Disclaimer: The information provided is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice