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Working from home

Claim the cost of your home office

If you do part of your job from home, the extra running costs are deductible. There are two ways to claim — pick the one that fits how you work and what records you keep.

Two ways to claim

Fixed rate or actual cost

The fixed rate is the simplest and what most people use. The actual-cost method can be larger, but it asks for far more detailed records.

Fixed rate per hour

easiest

Claim a set rate for every hour you work from home. One number covers your everyday running costs — just keep a record of your hours.

Rate$0.70 / hour
Example · 15 hrs/wk × 46 wks690 hrs
Claim$483

Actual cost

detailed

Work out the actual work-related portion of each running cost. More effort, more records — but potentially a larger claim.

  • Apportion electricity, gas, phone & internet by work use
  • Keep bills, a diary and a floor-area basis
What the rate covers

What’s inside the hourly rate — and what’s separate

The fixed rate bundles your everyday running costs into one figure. Bigger equipment is claimed separately through depreciation, so you don’t miss out on it.

Included in the rate
  • Electricity & gas
  • Home phone & mobile
  • Internet
  • Stationery & computer consumables
Claimed separately
  • Desks, chairs & office furniture
  • Laptops, monitors & devices
  • Decline in value of equipment over $300
Records you need

Keep it simple, keep it honest

1

A record of your hours

For the fixed rate, keep a running log of the actual hours you work from home across the year — not just an estimate.

2

At least one bill

Hold onto a bill for each running cost (like electricity) to show the expense was real.

3

Receipts for equipment

Keep receipts for furniture and devices so they can be depreciated separately from the hourly rate.

Watch & learn

Permanent home office & facilities

How a dedicated home office and its facilities are claimed — businesses up to $30,000 and individuals up to $20,000 — and how to set yours up the right way.

See the full video library
Permanent home office and facilities video thumbnail
Permanent Home Office (and facilities)

Work out your home claim

Our worksheet calculates your hours at the fixed rate automatically.

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