With more of our clients working remotely – whether full-time, part-time or occasionally – it’s important to understand the ATO’s current rules for claiming work-from-home deductions. We’ve summarised the five most common questions we receive at this time of year, so you can maximise your claim while staying compliant.

What is the fixed rate for this year?

For the 2024-25 financial year, the fixed-rate method is 70 cents per hour worked from home. This covers electricity, gas, phone, internet, stationery and computer consumables.

Is there a minimum number of hours needed?

No minimum applies. As long as you are genuinely working from home to fulfil your employment duties, you can claim for any number of hours worked – provided you incur additional expenses and keep proper records.

What records do I need to keep?

• Fixed-rate method: Keep a detailed record of every hour worked from home for the entire year (for example, timesheets, diaries or rosters). Estimates are not accepted.
• Actual-cost method: Keep a continuous 4-week diary that reflects your typical work-from-home pattern, along with receipts for all relevant expenses

Can I still claim my phone and data costs separately?

Not if you use the fixed-rate method – these costs are already included in the 70 cents per hour rate. If you use the actual-cost method, you can claim them separately, but you’ll need to apportion your usage and keep evidence such as itemised bills or usage logs.

Can I claim part of my rent or mortgage interest?

Generally, no – unless you have a dedicated home office set aside exclusively for work as a ‘place of business’. Even then, be aware this can haveCapital Gains Tax implications when you sell your home.

At a glance – your work-from-home options

Our tip: The right method for you depends on your records and your actual expenses. If you’re unsure which method will give you the best result, please get in touch – we can review your situation and advise on the most beneficial approach.