What You Can Claim When Working from Home in Australia (2025)
With remote work now a permanent fixture for many Australians, understanding what you can claim on your tax return is more important than ever. The Australian Taxation Office (ATO) has updated its guidance for the 2024–25 financial year, and here’s what you need to know.
What Expenses Can You Claim?
If you’re working from home to fulfil your employment duties (not just checking emails every now and then), and you incur additional running costs, you may be eligible to claim deductions. There are two methods:
- Fixed Rate Method – 70¢ per hour (increased from 67c in 2024)
This method includes the below expenses in the fixed rate amount of 70c:
- Electricity and gas;
- Internet and phone usage;
- Stationery and computer consumables;
You can also claim separate deductions for:
- Depreciation & repairs of office furniture and equipment;
- Cleaning of your dedicated office.
To make use of this method you must keep a record of your actual hours worked from home (e.g. a diary or timesheet).
Note also that you can’t claim a separate deduction for any of the expenses the fixed rate includes, like claiming your phone a second time.
- Actual Cost Method
This allows you to claim the actual expenses incurred but requires detailed records and tax receipts. You must apportion costs between work and private use.
Items you may claim include internet, phone, electricity and gas, computer consumables, stationery, cleaning and depreciation on equipment.
If you are an employee note that you generally can’t claim occupancy costs such as rent, insurance or mortgage interest.
If you are a home based business and specifically use part of your home for your business and you want to claim occupancy costs, you should consider and understand if by claiming this method you expose yourself to capital gains tax on your property.
If you earn personal services income occupancy costs cannot be claimed ie rent, mortgage interest, rate and land tax.
Note: You can’t claim general household items like coffee, tea, or toilet paper—even if your employer would normally provide them at the office.
Final Thoughts
Working from home offers valuable tax deduction opportunities, but it’s essential to keep accurate records and understand your own circumstances and what you are entitled to claim. If you need any help speak with one of our qualified accountants, call us on 07 5494 9173
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