More Australians are working from home than ever before — whether it’s a full-time arrangement, a hybrid setup or the occasional work-from-home day. But when your house becomes your office, you may also find yourself paying for things your employer would normally cover.
The good news? If the expenses are work-related, you may be able to claim some of them in your next tax return.
Here’s a simple breakdown of what you can claim and how to calculate it.
What you can claim
The ATO sorts working-from-home deductions into three main categories: running expenses, occupancy expenses, and phone and internet.
Running expenses
Running expenses are the additional costs that arise from using your home as a workspace. To claim them, you need to have an area you regularly use for work — even if the room is used for other purposes at different times.
You may be able to claim the work-related portion of:
- Lighting, heating and cooling
- Cleaning your work area
- Depreciation of office furniture, equipment and computers
- Repairs and maintenance of work equipment
- Stationery, printer ink and similar supplies
If you’re unsure how to calculate depreciation, the ATO’s online depreciation tool can help.
Occupancy expenses
These include rent, mortgage interest, insurance, council rates and land tax.
Employees generally cannot claim occupancy expenses — meaning you don’t need to worry about any capital gains tax implications. These claims typically apply only if you’re running a business from home and using part of the home exclusively as a place of business.
Phone and internet
If you use your mobile or home internet for work purposes, you can claim the percentage that relates to work use. You’ll need some form of record such as a usage breakdown, a sample work-use period or phone statements showing work calls.
How to calculate your claim
There are three ways you can work out your work-from-home deductions. The method you choose will depend on how detailed you want to be and what records you’ve kept.
1. Fixed-rate method (52 cents per hour)
You can claim 52c per hour for heating, cooling, lighting, cleaning and the decline in value of office furniture.
Phone, internet, stationery and computer depreciation need to be calculated separately.
2. Actual expenses method
You calculate the exact work-related portion of all additional expenses. This requires detailed records of your usage, bills, receipts and depreciation.
3. Revised fixed-rate method (67 cents per hour)
The ATO introduced an updated fixed rate that covers electricity, phone, internet and most general running costs. You just need records of the hours worked and some proof of expenses (like a bill or invoice).
This method replaced the old “shortcut” approach and is now a standard option.
Choosing the right method
Each method suits a different type of worker:
- If you want something simple → the fixed rate or revised fixed rate is easiest.
- If you’ve purchased a lot of equipment → the actual expenses method might give you a larger claim.
- If you’re working from home regularly → keeping track of hours and using one of the fixed-rate options can save time.
A quick note on records
No matter which method you use, you’ll need to keep:
- A record of your work-from-home hours
- Copies of bills or invoices
- Receipts for equipment or supplies
- A reasonable explanation of your work-related percentage
The ATO can ask for evidence at any time, so good record-keeping is essential.
Final thoughts
Working from home can come with extra costs, but claiming the right deductions can help offset some of those expenses. This guide provides a general overview, but everyone’s situation is different, so it’s always a good idea to speak to an accountant or check the ATO website for the most up-to-date rules.
