Home Office Deductions - Update for FY25

New fixed rate introduced

The fixed rate for home office expenses has increased from 67 cents to 70 cents per work hour. This means you can claim a deduction of 70 cents for every hour you work from home, for expenses such as internet and phone usage, electricity, gas, and stationery.

Expenses contained by the fixed rate

The fixed rate contains the following expenses:

·         Home and mobile internet

·         Mobile and home phone usage

·         Electricity and gas for heating, cooling, and lighting

·         Stationery and computer consumables, e.g. printer ink and paper

Expenses not contained by the fixed rate

The fixed rate does not contain the following expenses:

·         Work-related use of technology and office furniture e.g. desks, chairs, computers, and monitors. Alternatively, any decline in value of assets can be deducted separately.

Record-keeping requirements

To claim the home office deduction using the fixed rate, you must keep the following records:

·         From 28 February 2023 individuals are required to keep a record of the number of actual hours you work from home during the entire income year – for example, a timesheet, roster, diary, or other similar document. (A 1-month diary is not sufficient)