Work From Home Allowance – What You Can Claim in Your FY25 Tax Return

With more people working from home, it’s important to know what expenses you can claim in your 2025 tax return. The Australian Tax Office (ATO) has set out two methods for calculating your work-from-home (WFH) deduction.

1. Fixed Rate Method

This is the only “simplified” method available.

• For 2024-25 year you can claim 70 cents for every hour you work from home.

• This rate covers: electricity, gas, internet, mobile and home phone usage, and stationery/computer consumables.

• You don’t need a separate home office, but you do need to keep records of your hours worked at home (e.g. timesheets, rosters, diary entries).

On top of the 70c per hour, you can also separately claim:

• The decline in value of office furniture and equipment (e.g. desks, chairs, computers, printers).

• Repairs or maintenance of these items.

2. Actual Cost Method

This method allows you to calculate the real expenses of working from home.

• You can claim the actual proportion of electricity, internet, phone, and depreciation of equipment that directly relates to your work.

• You’ll need detailed records, including bills, receipts, and a diary showing work vs personal use.

  
  

Key Takeaway:

For most people, the 70c per hour fixed rate is the easiest way to claim. Just make sure you keep good records of your hours worked from home.  If you’re unsure which method gives you the best outcome, we can help you calculate the difference.

If you have any questions, please contact your Client Manager.