Working From Home? Check out these tips for a successful return

In a world where commutes are measured in steps rather than kilometres, working from home has become the new norm (be it as a hybrid role or full-time).

How Do I Know If I’m Eligible To Claim?

To claim a deduction, you must:

• Be working from home to fulfilyour employment duties, not justoccasionally checking emails or taking calls.
• Incur additional expenses as a result of working from home.

How Do I Calculate A Deduction?

There are two methods that can be used to calculate a work-from-home deduction.

Fixed Rate Method: Rate: 67 cents per hour.

• Covers: Electricity, gas, phone usage, internet, stationery, and computer consumables.
• Records: Keep a diary of hours worked from home.

Actual Cost Method: Calculates: Direct costs such as a portion of electricity, phone, and internet.

• Records: Detailed records and receipts are required.

What Could Be Considered A Home Office Expense?

Running Expenses

These include costs for heating, cooling, lighting, and cleaning dedicated work areas.

Depreciation of Equipment

You can claim depreciation for equipment and furniture used for work purposes. For items costing up to $300, an immediate deduction can be claimed.

Occupancy Expenses

These are typically not deductible unless your home office is your principal place of business

What Else Do I Need To Do?

Private vs. Work Use: You can only claim the work-related portion of your expenses.

Proof of Expenses: Maintain meticulous records of all expenses, including receipts and usage diaries.

Claiming home office deductions can be complex, but with proper documentation and an understanding of the available methods, you can ensure you’re maximising your tax return.