So your boss is making you do work at home, and your keen to know what you can claim on this years tax.

Here is a complete guide to what you need to know.

If your home is not a place of business, then your claims are restricted to running expenses only. This may include a portion of your heating, lighting, and telephone, electricity consumption, internet expenses and depreciation of equipment. This guide is not designed for people running a business from home, although many of the same things do apply. We suggest you contact us for more detailed information.

Keep a log book or diary.           

Download our PDF version HERE for free.                                             

There are basically 2 methods of claiming.

Use rates as determined by the ATO, the other option claims a percentage of the actual costs.

Fixed Rate Method

• an amount per work hour for additional running expenses
• allows separate claims for expenses not covered by the fixed rate, such as the decline in value of depreciating assets
• doesn’t require you to have a dedicated home office.

Actual Cost Method

the actual expenses you incur as a result of working from home.

You must keep records to show you incur expenses as a result of working from home. The type of records you need to keep will depend on the method you choose to calculate your expenses.

ATO Website

Prior Year Hourly rates:

• From 1 July 2018 – the rate is 52 cents per hour
• Years from 1 July 2014 to 30 June 2018 – the rate is 45 cents per hour
• Years from 1 July 2010 to 30 June 2014 – the rate is 34 cents per hour
• Years from 1 July 2004 to 30 June 2010 – the rate is 26 cents per hour
• Years from 1 July 2001 to 30 June 2004 – the rate is 20 cents per hour

Phone and internet expenses

Mobile and home phone and internet expenses can be claimed provided there is sufficient evidence to support the requirement for the work-related usage and a reasonable basis of apportionment is used for calculating the work-related use.

Apportioned business internet usage can be estimated based on records of actual usage maintained for the year or in stable usage circumstances a representative 4 week period will suffice.

Calculations are expected to take into account such factors as bundled services, personal usage, periods of annual leave and use by other persons.

Claiming for telephone up to $50

For incidental work use of a taxpayer’s telephone where the claim is not more than $50, the ATO accepts claims based on the following estimates:

• work calls from a landline: 25 cents per call
• work calls from a mobile: 75 cents per call
• work-related text messages sent from a mobile: 10 cents per text

Claiming more than $50

To establish a claim of more than $50, a 4-week representative period of expenditure can be used. Acceptable records include diary entries, electronic records, and bills, along with some evidence from the employer that work from home or work-related calls are expected. (Ideally a letter from your employer goes a long way. We recommend to get it now, before your circumstances change).

How to prove your claims

To substantiate your claim,

• keep records which support the actual costs incurred, and which indicate the correct non-deductible apportionment
• keep a representative four-week diary to establish a pattern of usage. If there is no regular pattern, then records of the duration and purpose of each occasion would need to be kept.
• Download our free record keeping diary 

A claim is not allowed where there are no additional costs incurred or the activities are incidental.