Working out your Work From Home (WFH) expenses – 2025 Rules
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You must also incur additional running expenses because of your WFH arrangement. These additional costs can typically include energy expenses for heating, cooling and lighting, home and mobile internet or data, phone expenses, and stationery or office supplies.
You need records that accurately track your WFH hours, such as keeping a diary or timesheets covering a representative four-week period showing your usual work pattern, or you can maintain a record of your entire year’s WFH hours.
The fixed rate method simplifies your calculations by applying a set rate of 70 cents per hour for each hour you work from home. If you choose this method, you can’t claim additional separate deductions for expenses already covered under the fixed rate method, such as stationery supplies.
The actual cost method requires you to keep detailed records of all additional costs incurred while working from home. You’ll need to track your WFH hours and maintain comprehensive records for all your WFH expenses, and demonstrate the proportion that relates to work.
It’s important to understand what you can’t claim when working from home. This includes items your employer might provide at the office, such as tea or coffee or other general household items. You also can’t make a claim for employer-provided laptops or mobile phones, or expenses which your employer has reimbursed.
You can make separate claims for expenses not covered by either of the above methods, such as work-related technology and office furniture like chairs, desks, computers and bookshelves, as well as repairs or maintenance on these items.
If you use depreciating assets for both work and personal purposes that cost more than $300, you’ll need to calculate the work-related proportion and only claim that percentage as a deduction for the decline in value over the effective life of the item. For items costing $300 or less, such as keyboards or computer mice, you can claim an immediate deduction in the year of purchase rather than depreciating them over time.
For a work-related expense to be deductible, it must directly relate to earning your income.
The differences in clothing can be blurred – so for example – overalls are claimable for a construction industry worker, but a suit or dress is not claimable for an office worker or presenter.
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