Can I Claim Home Office as a Business Expense in Australia?
Yes — Australian businesses and employees can claim home office running costs. The ATO offers a fixed-rate method of 70 cents per work-from-home hour (FY24–25) covering electricity, gas, internet, phone and stationery, or you can claim actual costs.
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What Australian Taxation Office (ATO) says
From 1 July 2024 the ATO's revised fixed-rate method is 70 cents per hour worked from home, covering energy, internet, mobile and home phone, stationery and computer consumables. You must keep a record of all hours worked from home (not just an estimate). Alternatively, claim actual costs apportioned by floor area and time.
When you can claim
- 70 cents/hour fixed rate for working from home (FY25)
- Actual costs of electricity, internet, phone apportioned by use
- Depreciation of office furniture and equipment ($300 immediate write-off, otherwise effective life)
- Cleaning costs of dedicated work area
When you cannot claim
- Mortgage interest or rent if you have a regular workplace elsewhere
- Coffee, tea, milk for personal consumption
- General household repairs
- Council rates and home insurance (employees)
Good to know
Pro tip: Keep a contemporaneous diary or timesheet of hours worked from home. The ATO no longer accepts 'representative' 4-week samples — you need the full year's actual hours.
Related expenses
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