Tax Deduction for Work from Home & Home Office Expenses?
Tax Return - Tax Deduction for Home Office Expenses?

Tax Deduction for Home Office Expenses & Work from Home?

Published on July 17, 2023
Top Accountants - Bookkeeping, Tax return and BAS experts

Tax Return, Bookkeeping and BAS experts

Can I claim work from home as tax deudction or home office expenses. The answer is "YES". However, you must be working from home to fulfil your employment duties and incur additional expenses as a result of working from home such as home office expenses.

In this article we will cover following home office expenses and work from home (WFH) tax deduction questions:

  1. How do I calculate work from home (WFH) and home office expenses as a tax deduction?
  2. List of home office expenses and work from home items you can claim as a tax deduction?

1. How do I calculate work from home (WFH) and home office expenses as a tax deduction?

ATO has provided two different ways to claim work from home and home office expenses as a tax deduction as following:

  1. Diary and actual running cost
  2. ATO provided rate per hour

Tax payer is suggested to select only one way depending upon whichever provides greater refund.

1.1 Diary and actual running cost

In this method, you will need to keep a diary to work out how much of your running expenses relate to doing work in your home office. The diary needs to detail the time you spend in the home office compared with other users of the home office. Keep diary records for a representative four-week period. Once four weeks diary is complete, use it as an average to calculate remaining months home office costs deduction.

1.2 ATO provided rate per hour 67 cents per hour effective from 1 July 2022

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