Eligibility to claim
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
- incur additional running expenses as a result of working from home
- have records that show you incur these expenses.
To calculate your deduction for working from home expenses, you must use one of the methods set out below. Where you incur running expenses for both private and work purposes, you need to apportion your deduction. You can only claim the work-related portion as a deduction.
Additional running expenses
Running expenses relate to the use of facilities within your home. These expenses are generally considered private and domestic expenses. You can claim a deduction for additional running expenses you incur as a direct result of working from home. Additional running expenses may include:
- electricity or gas (energy expenses) for heating or cooling and lighting
- home and mobile internet or data expenses
- mobile and home phone expenses
- stationery and office supplies
- the decline in value of depreciating assets you use for work – for example
- office furniture such as chairs and desks
- equipment such as computers, laptops and software
- the repairs and maintenance to depreciating assets.
In limited circumstances where you have a dedicated home office, you may also be able to claim:
- occupancy expenses (such as mortgage interest or rent)
- cleaning expenses.
If your employer pays you an allowance to cover your working from home expenses, you must include it as income in your tax return.
Choosing a method to calculate your claim
From 1 July 2022 there are 2 methods available to calculate your claim:
- Revised 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.
- Actual cost method
- the actual expenses you incur as a result of working from home.
You must keep records to show you incur expenses as a result of working from home. The type of records you need to keep will depend on the method you choose to calculate your expenses.
Contact South East Access for further advice the new “Home Office expenses”
Suite 25, 44 Deering St Ulladulla 2539
Phone: (02) 4454 4444
Fax: (02) 4454 0400
Office hours are 9.00am to 5:00 pm