Claiming Home Office Expenses
With more Australians working from home than ever before, understanding how to properly claim home office deductions has become crucial for maximizing your tax return.
Two Methods for Claiming
The ATO provides two methods for claiming home office expenses: the simplified method and the actual cost method.
Simplified Method
Under the simplified method, you can claim a rate of 67 cents per hour for each hour you work from home. This covers your phone and internet expenses, computer consumables, stationery and the decline in value of equipment.
Actual Cost Method
The actual cost method allows you to claim the actual work-related portion of your expenses. This requires more detailed record-keeping but can result in larger deductions for some taxpayers.
What You Can Claim
- Phone and internet expenses
- Computer equipment and software
- Office furniture and equipment
- Stationery and computer consumables
- Electricity and heating costs
Record-Keeping Requirements
Proper record-keeping is essential for claiming home office deductions. You'll need to maintain records of your expenses and be able to demonstrate the work-related portion of each expense.