Claiming Home Office Deductions on Your 2025 Tax Return

Updated: June 2025

Ah, the joys of working from home — no commute, no awkward small talk at the office microwave, and yes, potential tax deductions. Whether you’re stuck dragging work home after hours or you’re lucky enough to officially WFH a few days a week, there’s money on the table — and GoTax is here to help you grab it.

Let’s break down what you can and can’t claim when it comes to your humble home office.

What Counts as a Home Office? (Spoiler: Not Your Couch)

The ATO isn’t handing out tax deductions for typing emails in your jammies at the kitchen bench. To qualify for home office deductions, you need a dedicated workspace. We’re talking:

• A proper desk or study setup

• In a clearly defined area of your home

• Used mainly for work, not Fortnite or TikTok marathons

If your work-from-home situation ticks that box, you’re in the game.

What Deductions Can You Claim?

You’ve got two options here, depending on how fancy your setup is.

1. ATO Fixed Rate Method – 70c/hour (2024–25)

This rate covers:

• Electricity and gas (for lighting, heating/cooling)

• Internet usage

• Phone calls

• Stationery and consumables

• Decline in value of office furniture

Just keep a 4-week representative diary or logbook showing your working hours. Multiply the total by $0.70/hour, and boom — deduction sorted.

Example:
Skye’s an accountant working from home two days a week. She tracks 384 hours over the year. Her claim?
384 x $0.70 = $268.80 tax deduction — not bad for using her home Wi-Fi in peace.

2. Actual Cost Method

Feeling brave (and have epic record-keeping skills)? Then go the actual cost route, where you claim precise work-related portions of:

• Electricity/gas bills

• Internet and phone

• Depreciation on office equipment

• Cleaning costs (if you clean your work area)

You’ll need:

• Receipts and bills

• Work-use percentage calculations

• Depreciation schedules for gear like laptops or desks

Pro tip: If you're self-employed or run a business from home, this method can really pay off — you might even claim occupancy costs like rent or mortgage interest (but only in certain conditions).

What You Can’t Claim

Deductions aren’t a free-for-all. You can’t claim:

• Rent or mortgage (unless you run a full business from home)

• Coffee, lunch, or snacks (even if they’re tax-themed)

• Clothing (unless it’s a uniform or PPE)

• Everyday cleaning or maintenance unrelated to your office area

How GoTax Makes It Easy

With GoTax Online, we’ll help:

• Prompt you with the right questions

• Do all the home office maths

• Guide you on record keeping (yep, we’ve got a Deduction Grabber App too)

No spreadsheets. No spreadsheets rage. Just results.

Derek’s Final Word

If you’re working from home, don’t miss out on your rightful deductions. A bit of tracking now = extra cash later. If you’re not sure what to claim, just ask Derek (he’s smart, sarcastic, and slightly addicted to refund wins).

Signup to GoTax and not only get your Tax return done, you can also ask as many questions as you like and get informed answers. You have access to the equivalent of a Tax Einstein — that is our very own D.e.r.e.k as well as the best credentialed Tax Accountants around.

Need to double-check something? Try this page too:
???? https://www.gotax.com.au/crazy-tax-answers

Log your hours working from home

Disclaimer:
Note that the information provided is general in nature and subject to change. Please contact one of our professionals who can evaluate your circumstances and provide more accurate advice to your current situation.