WORKING FROM HOME DEDUCTIONS FOR 2024 TAX YEAR
There are now only two ways to claim deductions for working from home – Fixed Rate method and Actual Cost method.
The calculation for both methods is based on the total number of hours worked from home for the year 1 July 2023 to 30 June 2024.
You must keep a record of the hours you worked from home. This could be a:
- Time sheet
- Roster
- Diary
- Similar document showing hours worked
Fixed Rate Method
You can claim 67 cents for each hour worked from home and includes the additional running expenses you incur for:
- Home and mobile internet or data expense
- Mobile and home phone usage
- Electricity and gas for lighting, heating or cooling
- Stationery and computer consumables e.g. printer ink and paper
If this method is used, you can’t claim an additional separate deduction for these expenses.
Claims for other work-related expenses, such as the following, are not included in the shortcut method and will need to be separately notified for inclusion in the tax return.
Vehicle expenses – using ‘cents per kilometre’ (increased to 78 cents p/km) or ‘logbook’ method.
Clothing, laundry & dry-cleaning expenses. The clothing must be either occupation specific, protective clothing or a unique, distinctive uniform.
Tools, equipment and other assets and their maintenance. Industry registrations, union dues, and work-related subscriptions.
Actual Cost Method
The deduction is worked out by calculating the actual additional expenses incurred when working from home.
For electricity and gas, you will need cost per unit of power used, average units used per hour, total annual hours worked.
For phone, data and internet you will need to work out work related use over a continuous 4 week period and use the work-related percentage obtained for the whole income year.
Stationery and computer consumables – the work-related portion of the amounts spent.
If you have any questions or want more information, please contact our office.