How does the work from home deduction at 67 cents per hour work for 2024-25?

For the 2024-25 financial year, if you work from home, you can claim deductions using the revised fixed rate method at 67 cents per hour. This rate covers the following expenses:

• Electricity and gas for heating, cooling, and lighting
• Phone and internet usage
• Stationery and computer consumables

To use the 67 cents per hour method, you must:

• Work from home while carrying out your employment duties (not just checking emails briefly)
• Have a dedicated workspace or a defined area set aside for work
• Keep a record of the actual hours you worked from home. The ATO requires contemporaneous records such as timesheets, rosters, diary entries, or time-tracking logs for the entire financial year.

Important: The 67 cents per hour rate does not cover the cost of depreciating assets such as computers, monitors, desks, and chairs. You can claim these items separately based on their work-related use percentage. Items costing A$300 or less can be claimed as an immediate deduction. Items over A$300 are depreciated over their effective life.

Example calculation:

If you work from home 3 days per week (approximately 7.5 hours per day) for 48 weeks:

• Total hours: 3 x 7.5 x 48 = 1,080 hours
• Deduction: 1,080 x A$0.67 = A$723.60
• Plus depreciation on your A$1,500 laptop (work use 80%, over 4 years) = A$300 per year
• Total claim: approximately A$1,023.60

Alternatively, you can use the actual cost method, where you calculate the actual expenses incurred. This may result in a higher deduction but requires more detailed records.