I'm Working from Home; What Can I Claim on My Tax?

Working from home has become more common than ever, whether you're running your own business or working for someone else. With this shift, it's only natural to wonder what tax deductions you're eligible for. The good news? There are a variety of expenses you can claim. The key is knowing what applies to your situation, and keeping good records so you don’t miss out on anything at tax time.

Here’s a breakdown of what you might be able to claim.

1. Running Costs

Think of your home office as a mini business within your home. You’re using your personal space and resources to do your job, so it’s fair that you can claim some of the costs associated with that. These might include:

• Electricity and gas – You’re probably cranking up the heater in winter and running the fan in summer, right? That power usage adds up.

• Internet and phone – If you’re on Zoom calls or sending a bunch of emails, a percentage of your internet and phone bills can be claimed.

To keep things simple, you can either use the fixed-rate method (where you claim a set amount per hour) or the actual cost method (where you claim based on actual expenses and usage). The fixed-rate method is usually easier, but the actual cost method might give you a bigger deduction if your expenses are higher.

2. Office Equipment

If you’ve set up a little work nook or full-on home office, chances are you've spent some money on equipment. Think of items like:

• Computers, laptops, and monitors

• Office furniture (desk, chair, etc.)

• Printer, scanner, or other tech gadgets

You can claim the cost of these, but if an item costs more than $300, it’s treated as a capital expense and you’ll need to depreciate it over a few years. If it’s under $300, you can usually claim the full amount in the year you bought it. Easy peasy.

3. Occupancy Expenses (Rent/Mortgage)

This one can be a bit trickier. You can claim a portion of your rent or mortgage if your home office is a dedicated space used exclusively for work (sorry, the kitchen table doesn’t count!). But there’s a catch. If you own your home and claim part of the mortgage interest, it could affect your ability to claim the full main residence exemption on your capital gains tax (CGT) if you sell your home in the future. So, it's important to weigh up the benefits here.

4. Stationery and Consumables

This is the easy stuff. If you’re buying office supplies like paper, pens or printer ink, you can claim them. Just make sure you’re keeping the receipts!

5. The 67c per Hour Shortcut (for the time-poor)

If keeping track of individual expenses sounds like a nightmare, the ATO has made it easier with the fixed-rate method. As of July 2023, you can claim 67 cents per hour you work from home. This rate covers everything—running costs, electricity, internet, and furniture depreciation. The only thing it doesn’t cover is big-ticket items like your computer or desk chair.

It’s a simpler option but keep in mind you’ll need to keep track of your hours worked at home and have proof, like a timesheet or diary.

Keep Records, Keep Calm

No matter what method you choose or what you’re claiming, documentation is key. The ATO loves receipts! It’s worth keeping a log of your work hours if you’re claiming the fixed-rate method, and receipts for all those little purchases that can add up to big savings.

Final Thoughts

Tax time doesn’t have to be stressful when it comes to working from home. With a bit of planning and good record-keeping, you can maximise your deductions and reduce your tax bill. If you’re ever unsure what applies to you, it's a great idea to chat with your accountant—they'll make sure you're on the right track and help you claim what you’re entitled to.

And, of course, if you ever need advice or help with your tax, feel free to give us a shout. We’re always here to help.