Can you claim your home office expenses?

In today’s digital age it has become quite normal for people to spend some of their time working from home, especially considering the current climate with COVID-19. While working from home has its benefits like avoiding the morning rush and commute to work and being able to work in your PJ’s, it can also hurt you bank account if you have to pay for the expenses that your employer would normally be covering, such as internet, electricity, and phone bills. The good thing is that many of these expenses can be claimed back at tax time.

What can be claimed?

The Australian Taxation Office (ATO) allows you to claim the work-related costs of the following items for the time you were working from home:

What cannot be claimed?

If you are an employee who is working from home, the following items are not considered eligible home office expenses for tax purposes:

How can you claim your home office expenses?


The diary method

The first is by providing written records/evidence of the expenses, which can include:

The rate per hour method

The second is known as the ATO rate per hour or 52c per work hour method and provides a more streamlined process for calculating your deductions. You record the number of hours that you use your home office or at-home work area and then multiply the total time by 52 cents.

Don’t forget that you are also able to lodge a separate claim for items such as phone bills, internet expenses & equipment depreciation as well.

If you have any queries, please contact our office on 07 4151 8898.

The Money Edge | Bundaberg

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