Home Office & Work from Home Expenses: What You Can Claim in 2025

Working from home? Whether you’re Zooming in your pyjamas or punching numbers at your kitchen bench, there could be tax deductions lurking in your lounge room. Here’s how to claim them without tripping over the ATO’s audit cord.

Who Can Claim?

You can claim a tax deduction if:

• You work from home to earn income (not just checking emails once a week).

• You incur additional running costs because of working from home.

No, browsing cat memes doesn’t count. But if you’re doing legit work and your bills are higher, you’re in for a tax deduction.

What You Can Claim

• Electricity or gas for heating, cooling, and lighting your work area

• Internet and mobile data as a tax deduction

• Phone bills (work-related calls only)

• Stationery and office supplies as a tax deduction

• Depreciation on home office furniture and equipment (desk, chair, computer)

• Cleaning costs (if you have a dedicated home office)

• Repairs and maintenance to work-related equipment as a tax deduction

• Occupancy costs (like rent or mortgage interest) only if your home is your principal place of business and you have a dedicated office

What You Can’t Claim

• Coffee, tea, or Tim Tams (we know, heartbreaking)

• Anything your boss reimbursed you for

• General household items or private use stuff (like Netflix or your kids' crayons)

• Rent or mortgage unless your home is the business

Two Ways to Claim

Option A: Fixed Rate Method (2025 Edition)

• Claim 70 cents/hour worked from home

• Covers: power, internet, phone, stationery, computer consumables

• You need records of hours worked (diary, timesheet, roster)

• You can still separately claim depreciation for office equipment (like your desk or monitor)

Example: Work 500 hours from home? That’s $350 off your taxable income. Nice.

Option B: Actual Cost Method

• Work out the business portion of each bill

• Requires detailed records and receipts

• More complex, but might give you a bigger tax deduction

Utilise Deduction Grabber for your records it's free.  Just log in with your Gotax ID.

Records You’ll Need

• Timesheets, diary notes, or work rosters

• Receipts or bills for everything you claim

• A clear method to work out business-use percentages (e.g. floor plan, usage logs)

Common Traps

• Double dipping: Don’t claim internet twice if you’re using the fixed rate

• No receipts: No paperwork = no deduction

• Reimbursements: If your boss paid you back, you can’t claim it

• Mixed use: Only claim the work portion as a Tax Deduction

Real-Life Examples

• You work 400 hours from home = $280 fixed rate claim

• Buy a new office chair for $300 = claim depreciation over time (or fully if under instant asset write-off)

• Your mobile phone is used 60% for work = claim 60% of the bill

FAQs

Q: Can I claim rent or mortgage? A: Only if your home is your main place of business and you have a dedicated office.  It must look, smell and taste like a business to anyone passing by.

Q: Can I claim internet as a tax deduction? A: Yes, but only the work-related portion. And it’s already covered under the fixed rate.

Q: What if I work from the kitchen table? A: You can still claim the fixed rate, but no occupancy costs.

Q: Can I claim cleaning as a tax deduction? A: Yes—if you have a separate home office.

Q: What if my employer reimburses me? A: Then you can’t claim the reimbursed amount.

Why GoTax is the Smartest Way to Maximise Your Home Office Deductions

GoTax is the fastest, cheapest online tax return in Australia—especially for folks who work from home. We help you claim the most tax deductions, dodge the common traps, and back it all up with real Aussie tax pros who check your return before it goes anywhere near the ATO.

Let us take care of your tax return while you take care of business in your slippers.

Other Interesting Stuff:

Crazy Tax Questions

Crazy Tax Answers

The Questions our clients ask

ABN tax returns