If you work from home, you may be eligible for tax deductions.

Two methods available:

• Fixed rate method (70 cent per hour from 1 July 2024):
  Covers electricity, internet, phone use, stationery, and computer consumables.
  
  
• Actual cost method:
  
• Claim the additional costs of working from home. E.g. The extra amount of electricity it costs to run your computers, etc..
• Work related percentage of phone use, internet use, etc..



You can’t claim rent or mortgage unless your home is a place of business.

You must keep records:

• Hours worked from home (e.g. timesheets or diary records). This needs to be exact and not just approximate days working from home.
  
  
• Receipts and invoices for claimed expenses.
  
  

You need to apportion costs between work and personal use.

Choose the method that gives the best deduction. 

Ensure you meet all ATO substantiation rules. 

If you need help working out your work from home deductions, get in touch with Key Tax Solutions today.