Since COVID-19, working from home has become common across Australia. If you worked from home during the 2025 financial year, you may be eligible to claim deductions on certain expenses. Knowing what you can and cannot claim is the key to maximising your refund while staying compliant with the Australian Taxation Office (ATO).
1. The ATO Methods for Claiming Deductions
The ATO allows you to calculate your deductions in two main ways:
- Fixed Rate Method (67 cents per hour):
You can claim 67c for each hour worked from home. This covers electricity, internet, phone usage, stationery, and computer consumables. You must keep a record of hours worked (timesheets or a diary). - Actual Cost Method:
You claim the actual expenses incurred. For this, you need receipts, invoices, and detailed records. It’s more work but may result in a larger deduction.
2. Expenses You Can Claim
Eligible work from home deductions include:
- Electricity and gas (for heating, cooling, and lighting)
- Phone and internet usage (work-related portion only)
- Office supplies like paper, pens, and ink cartridges
- Work equipment depreciation (laptops, printers, desks, chairs)
- Cleaning costs for your dedicated workspace
3. Expenses You Cannot Claim
Some costs cannot be claimed, including:
- Coffee, tea, and snacks
- Rent, mortgage interest, and council rates (unless part of your home is a registered place of business)
- Clothing (unless it’s a compulsory uniform or protective gear)
4. Record Keeping Requirements
The ATO is strict about evidence. Keep:
- Timesheets or rosters (for hours worked)
- Receipts for purchases
- Bills showing usage (phone, internet, electricity)
- A work diary if you split work/personal use of equipment
5. Tips to Maximise Your Deduction
- Use the actual cost method if you bought new equipment (like a laptop or ergonomic chair).
- Keep digital copies of receipts for easy access.
- Lodge early to avoid missing the 31 October 2025 deadline.
Don’t miss out on your refund! At TaxVisory, we specialise in helping individuals claim every eligible work from home deduction. Get in touch today and let us make tax time stress-free.
