There is a lot of confusion about the home office and what expenses can be claimed for tax deductions. Therefore, we have created this guide on which home office expenses are deductible and the methods for calculating these expenses.
However, note that this is only a basic guide and you should communicate the finer details with your accountant to ensure your calculations are correct.

This method allows you to claim deductions for your home office, with the fixed rate for every hour you work from home pegged at 52 cents. It covers expenses for:

For this method, you must keep records, such as:

To determine your total deductible amount, you can use the four-week representative period for the rest of the year. Any changes in your work pattern must be reflected in a new record. You must have a dedicated work-from-home area to use the fixed rate method. It typically does not cover the following:

If you want to claim the above expenses, you need to calculate your work-related use of each item separately.
To do that, you also need records as proof: Documentation showing relevant expenses and depreciating assets purchased
Phone accounts distinguishing your work-related calls from private calls A diary showing:

The shortcut method simplifies the calculation of your home office deductions. Using this method, you can claim 80 cents for every hour you work from home. However, this method is temporary and can only be used to calculate your work-from-home deduction between:

You can use this method if:

The shortcut method covers all work-from-home expenses, such as:

If you use this method, you cannot claim any other home office expenses. However, unlike the fixed-rate method, there is no need to calculate the depreciation of equipment, furniture, and other related assets separately. You also don’t need a dedicated work area. You only need records of the number of hours you worked from home, whether in a timesheet, roster, diary, or a similar document.

Another way to claim home office deductions is by using the actual cost method. This may include the following expenses:

• Cooling, heating, and lighting
• Home office furniture (e.g., desk, chair) and furnishings depreciation
• Depreciation of phones, computers, laptops, etc.
• Phone expenses
• Internet expenses
• Cleaning (if you have a dedicated work area)
• Office supplies, e.g., ink, stationery

If you don’t have a dedicated work area, you may only have minimal additional running expenses. For example, if your work area is in a common area — like a lounge room — and is also used by other family members, you won’t be incurring any additional costs for lighting, heating, or cooling.

To calculate the work-related portion of your actual expenses, you must provide the supporting documentation:

• A record of the actual hours you worked from home
• A diary for a representative four-week period showing your usual work-from-home pattern

You also need to have proper documentation for:

• Calculating the decline in value of depreciating assets
• Cleaning expenses if you have a dedicated work area
• Heating, cooling, and lighting expenses if you have a dedicated work area
• Phone or internet expenses
• The cost of computer consumables and stationery

To claim a deduction for assets worth $300 or more, calculate the decline in value for both the period you owned the assets and used them for work-related purposes.