The ATO has provided answers to some common work-from-home questions for the 2025 year. A summary of the key issues is below.
- Can an employee claim rent if they work from home full time?
- Generally, employees can’t claim occupancy expenses like rent, insurance, or mortgage interest unless they have a specific area of their home set aside as a ‘place of business’.
- If you can claim a deduction for occupancy expenses, this can prevent you from accessing a full CGT exemption under the main residence rules on sale of the property.
- What is a practical way to prove work use of my phone?
- Keep a record for a continuous 4-week period showing your usual pattern of working at home. This can be a diary or spreadsheet.
- What types of records do taxpayers need to prove their total hours worked from home?
- You need records showing all hours worked from home between 1 July 2024 and 30 June 2025, including start and finish times for each day. This can be recorded through a diary, spreadsheet, rosters, or timesheets.
- Is there a minimum number of hours to qualify for a working from home (WFH) deduction?
- There is no minimum number of hours required. To claim these expenses, you must:
- Have records showing you incurred these expenses.
- Incur some additional running expenses because of working from home.
- Be working from home to fulfill your employment duties, not just carrying out minimal tasks.
- There is no minimum number of hours required. To claim these expenses, you must:
- What is the fixed rate for Tax Time 2025?
- The fixed rate for the 2024–25 income year is 70 cents per hour worked from home.
- How to calculate work-related expenses?
- If using the actual cost method, calculate the work-related percentage of phone calls and data usage on a reasonable basis. Keeping a spreadsheet or diary for a continuous 4-week period is the easiest way to work out the deduction.
Unsure if you’ve claimed everything you’re entitled to?
If you worked from home during the 2025 financial year, we can help review your return and ensure your deductions are accurate and complete. Get in touch to book a review.
