Home Office Expenses: What You Can Claim

With the rise of remote work, home office expenses have become increasingly relevant. If you use a dedicated workspace at home for your job, you may be eligible to claim various work-related expenses on your tax return. Here's what you need to know:

Common Home Office Expenses

• Electricity and Gas: A portion of your home utility bills can be claimed if you use a dedicated workspace.
• Internet and Phone Bills: Costs for work-related use of your internet and phone can be claimed, either as a percentage of your total usage or based on itemised bills.
• Office Supplies: Includes items like stationery, printers, and furniture used exclusively for work.
• Depreciation of Equipment: Claim depreciation on work-related equipment like computers, monitors, and desks.

Methods for Claiming Home Office Expenses

You can claim these expenses using one of the ATO-approved methods:

1. Shortcut Method: Claim 67 cents per hour for work-related use of your home. This method covers utilities, internet, and phone expenses without requiring detailed records.
2. Fixed-Rate Method: Claim a set amount per hour (currently 52 cents) for utilities and depreciation, plus actual costs for other expenses like internet and phone.
3. Actual Cost Method: Claim the exact expenses you’ve incurred, supported by receipts and a detailed logbook.

Using the right method depends on your circumstances and available records. The Cado Tax app helps you calculate and optimise your claims based on the method that works best for you.

FAQs

What is the shortcut method for claiming home office expenses?

The shortcut method allows you to claim 67 cents per hour for work-related use of your home. This covers utilities, internet, and phone expenses, simplifying the process without needing detailed records.

Can I claim home office furniture?

Yes, if the furniture is used exclusively for work. Items like desks and chairs can be claimed either as an immediate deduction (if under $300) or depreciated over time.