1. What is the fixed rate for the 2025 tax year?

For the 2024–25 financial year, the fixed rate for claiming work-from-home expenses is 70 cents per hour worked from home.

This rate may change annually, so it’s essential to check the ATO website each year for the most up-to-date figure.

We recommend using the ATO’s home office expenses calculator to ensure accurate claims.

2. Is there a minimum number of hours required to claim WFH deductions?

No minimum hours are required. However, to be eligible to claim, you must:

• Be genuinely working from home to perform your job duties—not just doing minor tasks like checking emails

• Incur additional running costs due to working from home

• Keep appropriate records to show those costs were incurred

3. What records are needed to prove hours worked from home?

To claim using the fixed rate method, you must keep detailed records for the full period you worked from home (1 July 2024 – 30 June 2025). Your records should show:

• Dates, start and finish times for each WFH session

• Entries must be made at the time of working or shortly afterward

• Accepted formats include digital or handwritten diaries, timesheets, rosters, or spreadsheets

For the actual cost method, a record of a continuous 4-week period reflecting your usual WFH pattern is required.

4. How can I show work use of my phone?

If you're claiming using the fixed rate method, phone and internet costs are already included in the 70c/hour rate—you can’t claim them separately.

If you're using the actual cost method, you’ll need to work out your work-related percentage. The easiest way is to track usage (calls, data, browsing) over a continuous 4-week period using a diary or spreadsheet. This representative data can be applied to calculate your annual deduction.

5. Can employees claim rent under the actual cost method?

Generally, no. Employees working from home cannot claim rent, mortgage interest, or home insurance as deductions—unless they have a dedicated area of their home set up as a true place of business.

Even then, there could be capital gains tax (CGT) implications when you sell your home. It's important to seek professional tax advice if you’re considering claiming occupancy expenses.