Know your new rates for work-from-home tax deductions

If you work from home, there are a range of tax deductions you can claim.

Since 1 July 2022, the Australian Tax Office (ATO) has changed the way you can claim working from home tax deductions¹. You may need to keep different records for your tax return.

Actual cost method

The work-related portion of actual expenses you incur as a result of working from home.

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.

Are you eligible to claim work-from-home tax deductions?

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.

You also must incur additional expenses as a result of working from home. You can’t claim for things like coffee, tea, milk and other general household items.

Costs that relate to your children's education or items your employer provides – for example, a laptop or a mobile phone also can’t be claimed.

You have must have records that show you incur these expenses. Where you incur running expenses for both private and work purposes, you can only claim the work-related portion as a deduction.

What you can claim – Fixed rate method

The fixed rate of 67 cents per work hour covers:

• energy expenses (electricity and gas)
• phone usage (mobile and home)
• internet
• stationery
• computer consumables.

You can’t claim additional deductions for any expenses covered by the rate if you use this method. But you can separately claim:

• The work-related portion of the decline in value of assets used while working from home, such as computers and office furniture; and
• The work-related portion of the repairs and maintenance of these assets
• In limited circumstances, costs associated with cleaning a dedicated home office.

You need to keep a record of all the hours worked from home for the entire income year.

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1. Australian Tax Office, Working from home expenses, accessed accessed 28 May 2024.