Work From Home Tax Deductions in Australia: A Record-Keeping Guide
If you work from home, some of your running costs may be deductible at tax time. The catch is records: the ATO expects you to back up what you write down. This guide explains the two methods the ATO offers and, more importantly, how to keep the records that make either one painless.
What counts as a work-from-home expense?
Working from home generally means doing your job remotely, not just checking the odd email. According to the ATO's working-from-home guidance, the running expenses people commonly consider include:
- Electricity and gas for heating, cooling and lighting your work area
- A share of your home internet and phone usage
- Stationery and computer consumables
- The decline in value of equipment like a laptop, monitor or desk chair
Whether any of these apply to you, and how much, depends on your circumstances. The ATO is the authority on what's eligible, and a registered tax agent can advise on your specific situation.
The ATO's two methods
The ATO offers two ways to work out your home running costs. You choose whichever suits you, but the records differ:
1. The revised fixed rate method
You claim a set rate for each hour you work from home, which bundles together energy, internet, phone and stationery. The key requirement is a record of the actual hours you worked from home across the year. Estimates for a four-week period are no longer accepted. Check the current per-hour rate on the ATO fixed rate method page, as it's updated from time to time.
2. The actual cost method
You work out the real cost of each expense and the work-related portion of it. This usually means more receipts and more maths, but it can suit people with a dedicated home office and higher running costs. You keep evidence for every expense you include.
Records are the part people get wrong
Both methods rely on evidence. The ATO requires you to keep records for five years from the date you lodge. In practice that means:
- A log of hours worked from home (for the fixed rate method)
- Receipts or invoices for any equipment, stationery or running costs
- A note of how you worked out any work-related percentage
The trouble is that receipts fade, emails get buried, and by July nobody remembers what that hardware-store run in October was for. The fix is to capture each record the moment it happens, rather than reconstructing the year from memory.
How Recpt helps keep WFH records organised
Recpt is a record-keeping tool. You snap a receipt, the AI reads the merchant, date and amount and suggests a category, and it lands in one searchable place. You confirm or change the category in a tap. The labels are for sorting your own records, not a statement of what's deductible. At tax time you export a clean CSV with the image attached for every record, ready to hand to your accountant or registered tax agent.
It won't tell you what you can claim or calculate your refund. That's the job of the ATO rules and a registered tax agent. What it does is make sure that when you (or your agent) sit down to do the return, the evidence is already organised and easy to find.
Keep your WFH receipts sorted all year
Snap a receipt, Recpt suggests a category, and it's filed for tax time. Free to start. No card needed.
Try Recpt free →Keep reading
- How to organise receipts for tax (without the shoebox)
- Tax deductions for tradies: keeping your receipts in order
This article is general information about record-keeping, not tax advice. Recpt is a record-keeping tool, not a registered tax agent. Rules and rates change. Always check the current ATO guidance at ato.gov.au and consult a registered tax agent before lodging.