Work From Home Tax Deductions What You Can Claim

Posted by BaronTax
6
Jul 13, 2025
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Feeling overwhelmed by work-from-home tax deductions? You're not alone—but the right strategies can help you keep more of your hard-earned money.

Key Takeaways

  • Two easy methods: Choose between the ATO’s simplified 70¢ per hour fixed-rate method or the more detailed actual-cost method, depending on your record-keeping habits.

  • Eligible running expenses: Claim electricity, internet, phone, stationery, and small tools if you work from home consistently.

  • Depreciation matters: Items over $300—like desks or computers—can be depreciated over several years for added tax relief.

  • Home office requirements: You may be able to deduct occupancy costs like rent or cleaning if you use a dedicated space for business.

  • Record-keeping is key: Maintain detailed logs, receipts, and bills to back up your claims and stay compliant.

  • Shared expenses must be apportioned: Only the work-related portion of shared costs like utilities can be deducted—be reasonable.

  • Extra claims with actual cost: Unlike the fixed rate, the actual-cost method lets you claim separate depreciation and direct costs.

? Want to make sure you're not leaving money on the table? Read the full breakdown in our Work‑From‑Home Tax Deductions Guide

? See all our small business and tax planning tips

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