October 1, 2025

Working from Home? Claiming Your Home Office Expenses Without Getting Audited

Published: 1 October 2025 Gotax Publishing

Working from home isn’t just a pandemic hangover—it’s the new normal for thousands of Australians. Whether you’re a freelancer, sole trader, or employee with a hybrid setup, you may be eligible to claim home office expenses in your tax return. But here’s the catch: the ATO is watching closely.

This guide breaks down who can claim, what you can claim, and how to avoid triggering an audit. Whether you’re lodging a Quick Return ($25), a Full Tax Return ($65), or a Small Business Tax Return ($140), Gotax helps you claim smart and stay compliant.

Who Can Claim Home Office Expenses?

You may be eligible if you:

Work from home regularly (not just occasionally)
Use part of your home exclusively for work
Incur expenses directly related to earning income

This includes:

Freelancers and sole traders
Small business owners
Employees with hybrid or remote arrangements

If you’re running a business from home, check out our Small Business Tax Returns page for tailored support.

What You Can Claim (and What You Can’t)

Claimable Expenses

Electricity and gas (for heating, cooling, lighting)
Internet and phone usage
Office furniture and equipment (desk, chair, monitor)
Cleaning costs for your workspace
Depreciation on assets (computer, printer)

Not Claimable

Rent or mortgage (unless part of your home is a dedicated business space)
Coffee, snacks, or personal items
Expenses already reimbursed by your employer

The ATO is strict. If it’s not directly related to earning income, don’t claim it.

Fixed Rate vs Actual Cost Method

There are two ways to calculate your home office deductions:

1. Fixed Rate Method

67 cents per hour (covers electricity, internet, phone, cleaning)
Must keep a record of hours worked from home
Simple and safe

2. Actual Cost Method

Claim actual expenses based on usage
Requires detailed records, receipts, and calculations
Higher risk, but may yield larger deductions

Most Gotax users choose the Fixed Rate Method for simplicity and audit protection.

Common Audit Triggers

The ATO uses data-matching and AI to flag suspicious claims. Avoid these traps:

Claiming 100% of internet or phone costs
Inflating hours worked from home
Claiming rent without a dedicated business space
Using vague or generic expense descriptions

Gotax helps you avoid these mistakes with guided questions and deduction tools. We don’t just lodge—we protect.

How Gotax Helps You Claim Safely

Whether you’re lodging a basic return or running a business from home, Gotax makes it easy:

Quick Return ($25) – for simple income and deductions
Full Tax Return ($65) – for ABN, GST, and multiple income sources
Small Business Tax Return ($140) – for sole traders and home-based businesses

We guide you through every deduction, flag risky claims, and help you lodge fast. Visit the Gotax Online Library for more tips.

Frequently Asked Questions

Can I claim home office expenses if I work remotely part-time?

Yes, but only for the hours you actually work from home.

What’s the easiest way to claim?

Use the Fixed Rate Method—67 cents per hour. Gotax calculates it for you.

Can I claim rent or mortgage?

Only if part of your home is a dedicated business space. Most employees can’t.

Do I need receipts?

Yes—for actual cost claims. For fixed rate, keep a log of hours worked.

Can I claim internet and phone?

Yes, but only the work-related portion. Gotax helps you apportion correctly.

What if I bought a new desk or chair?

You can claim depreciation or the full cost (if under $300).

Is cleaning claimable?

Yes, if it’s for your work area. General house cleaning isn’t.

Can I claim coffee or snacks?

No. Personal items aren’t deductible.

What’s the risk of audit?

High if you overclaim or lack records. Gotax helps you stay compliant.

Can I use Gotax for home office claims?

Absolutely. We support all deduction types.

What’s the difference between Quick and Full Tax Return?

Quick Return ($25) is for basic claims. Full Tax Return ($65) covers ABN, GST, and complex deductions.

What if I run a business from home?

Use our Small Business Tax Return ($140) option.

Can I lodge on my phone?

Yes. Gotax is mobile-friendly and built for fast online tax returns.

Is Gotax a registered tax agent?

Yes. We’re registered with the Tax Practitioners Board.

Where can I learn more?

Visit the Gotax Online Library for guides and updates.

Call to Action

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