How to Claim for Working from Home Expenses

December 26, 2023

Simon Madziar
Simon Madziar

Claim Your Working-From-Home Expenses!

Working from home is becoming increasingly common, and with it comes the opportunity to claim deductions on your tax return. This guide will help you understand what's deductible and how to claim it.

Who can claim?

You can claim working-from-home expenses if you:

  • Work from home regularly to fulfil your employment duties. This doesn't include occasional tasks like checking emails.
  • Incur additional running expenses due to your home office. This means you need to spend more on things like electricity, internet, and stationery because you're working from home.
  • Keep accurate records of your expenses and hours worked.

Two methods for claiming deductions:

1. Revised Fixed Rate Method: This is the simplest option. You claim a flat rate of 67 cents per hour worked from home. This rate covers expenses like:

  • Data and internet
  • Mobile and home phone usage
  • Electricity and gas
  • Computer consumables (e.g., printer ink)
  • Stationery

Additional deductions:

  • Decline in value of assets: You can claim a separate deduction for the decline in value of assets used for work,like computers and office furniture.
  • Repairs and maintenance: You can also claim deductions for repairs and maintenance of work-related assets.
  • Cleaning: If you have a dedicated home office, you can claim a portion of your cleaning expenses.

2. Actual Cost Method: his method allows you to claim the actual cost of your work-related expenses. This can be more complex, but it may be beneficial if your expenses are high.

What you need to keep track of:

  • Hours worked from home
  • Work-related expenses: Keep receipts and invoices for your expenses.
  • Work usage for internet and assets: If using the fixed rate method, keep a diary to track work-related usage.

Resources:

Consult a professional:

Talk to your tax advisor or accountant to ensure you're claiming all the eligible deductions for your home office expenses. Remember, they're here to help!

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