Claiming Work From Home Deductions in FY25

Working remotely? You may be entitled to claim certain running costs — but the rules have changed for FY25.

Fixed Rate Method: 70c/hour

From 1 July 2024, the ATO’s revised fixed rate method allows individuals to claim 70 cents per hour worked from home.

This rate includes:

• Electricity and gas
• Internet and mobile use
• Stationery and computer consumables

Note: You cannot claim these expenses separately if you use this method.

To Claim the Fixed Rate:

• Keep a log of hours worked from home (diary, spreadsheet, timesheet)
• Keep at least one document for each included expense type

Actual Cost Method: When It May Be Better

If you have higher home office costs or a dedicated work area, the actual cost method might produce a larger deduction — but you’ll need detailed receipts and calculations.

Example Comparison:

If you work 20 hours per week for 48 weeks, the fixed rate would give you a deduction of $672.
If your actual electricity, internet, and consumable expenses are $2,000, and you can justify 30% business use, your deduction might be around $600. Add depreciation on a home office setup, and the actual method could come out ahead.

Quick Comparison

• Fixed rate method: Simpler, consistent, no extra substantiation for included items
• Actual cost method: More complex, but may result in higher deductions

Important Tip:

You cannot claim r