Working from home expenses, what can I claim and how do I claim it?

Working from home expenses, what can I claim and how do I claim it?

Working from home expenses, what can I claim and how do I claim it?

Deductions for expenses you incur to work from home such as stationery, energy and office equipment.

Eligibility to claim

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.

To calculate your deduction for working from home expenses, you must use one of the methods set out below.

Where you incur running expenses for both private and work purposes, you need to apportion your deduction. You can only claim the work-related portion as a deduction.

Additional running expenses

Running expenses relate to the use of facilities within your home. These expenses are generally considered private and domestic expenses. You can claim a deduction for additional running expenses you incur as a direct result of working from home.

Additional running expenses may include:

electricity or gas (energy expenses) for heating or cooling and lighting
home and mobile internet or data expenses
mobile and home phone expenses
stationery and office supplies
the decline in value of depreciating assets you use for work – for example

office furniture such as chairs and desks
equipment such as computers, laptops and software

the repairs and maintenance to depreciating assets.

In limited circumstances where you have a dedicated home office, you may also be able to claim:

occupancy expenses (such as mortgage interest or rent)
cleaning expenses.

If your employer pays you an allowance to cover your working from home expenses, you must include it as income in your tax return.

If you’re a sole trader or business owner and your home is your principal place of business, see Deductions for home-based business expenses.

Choosing a method to calculate your claim

From 1 July 2022 there are 2 methods available to calculate your claim:

Revised fixed rate method

an amount per work hour for additional running expenses
separate amount for expenses not covered by the revised fixed rate, such as the decline in value of depreciating assets
you no longer need a dedicated home office.

Actual cost method

the actual expenses you incur as a result of working from home.

You must keep records to show you incur expenses as a result of working from home. The type of records you need to keep will depend on the method you choose to calculate your expenses.

For a summary of this information in PDF format, see Working from home deduction (PDF, 777 KB)This link will download a file.

Prior year work from home methods

To work out your deduction for working from home expenses in prior income years, use the table below for the methods available.

Availability of work from home expenses methods

Method
Availability
Rate

Actual cost
Always available
Calculate actual costs

Fixed rate method
1 July 2018 to 30 June 2019

1 July 2019 to 30 June 2020

1 July 2020 to 30 June 2021

1 July 2021 to 30 June 2022

52 cents per work hour

Shortcut method
1 March 2020 to 30 June 2020

1 July 2020 to 30 June 2021

1 July 2021 to 30 June 2022

80 cents per work hour

For the work from home fixed rates before 2018–19, see PS LA 2001/6 Verification approaches for home office running expenses and electronic device expenses

Expenses you can’t claim

You can’t claim a deduction for:

coffee, tea, milk and other general household items, even if your employer may provide these at work
costs that relate to your children’s education, such as equipment you buy – for example, iPads and desks, subscriptions for online learning
items your employer provides – for example, a laptop or a mobile phone
expenses where your employer reimburses you for the cost.

 

Authorised by the Australian Government, Canberra.

Last modified: 26 Apr 2023, QC 72158

https://www.ato.gov.au/Individuals/Income-deductions-offsets-and-records/Deductions-you-can-claim/Working-from-home-expenses/



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