For the 2024–25 financial year in Australia, the Australian Taxation Office (ATO) has updated its rules for claiming work from home (WFH) deductions.
Here’s a summary of what you need to know:
✅ Eligibility Criteria
To claim WFH deductions, you must:
- Be genuinely working from home to fulfil your employment duties (not just checking emails occasionally).
- Incur additional running expenses as a direct result of working from home.
- Keep records to prove your expenses
📊 Methods to Calculate Your Deduction
You can choose between two methods:
1. Fixed Rate Method (70¢ per hour)
- Covers: electricity, internet, phone, stationery, and consumables.
- You cannot claim these expenses separately if using this method.
- You must keep a record of actual hours worked from home (e.g., a diary or timesheet).
2. Actual Cost Method
- Claim the actual expenses incurred.
- Requires detailed records and receipts for each expense.
- You must apportion costs between work and private use.
Would you like help calculating your deduction using one of these methods, or maybe a template to track your WFH hours and expenses?