Claiming 2024 Working from Home Expenses

Hello Chasers,

If you have been working from home this financial year, you will probably have some work- related expenses to claim.

There are now two ways to calculate a work from home deduction:

  • fixed rate method; and
  • actual cost method.

The Fixed Rate Method

Using the fixed rate method, you can claim a rate of 67 cents per hour worked at home.

This amount covers additional running expenses, including electricity and gas, phone and internet usage, stationery, and computer consumables. A deduction for these costs cannot be claimed elsewhere in the tax return.

You can however separately claim any depreciating assets, such as office furniture or technology. They can refer to the Depreciation and capital allowances tool on the ATO’s website for assistance in this regard.

It is important that you have the right records. For the fixed rate method, this includes a record of:

  • the total number of hours worked from home (for the entire year);
  • the additional running expenses covered by the rate per hour that they incurred (e.g.,

phone bills and electricity bills); and

  • any depreciating assets (and how much of their use of that asset was work-related).

The Actual Cost Method

For the actual cost method, you need a record of:

  • the hours worked from home (whether that be the total hours, or a continuous

four-week period representing the usual pattern of work, if the hours are consistent throughout the year);

  • the additional running expenses (e.g., phone bills and electricity bills); and

how the deduction was calculated.

We have created a template for recording and calculating the hours worked for your convenience, please contact Shannae Hewett on 03-55612643 to get a copy for your 2024 tax return preparation.

Have a great day!

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