If you’ve been working from home, even just a few hours a week, you might be able to claim some tax deductions. The rules can be tricky, especially with updates each year, so here are clear answers to the top 5 questions people are asking for Tax Time 2025.
1. What is the fixed rate for working from home in 2025?
For the 2024–25 income year, the fixed rate is 70 cents per hour you work from home. This rate covers costs like electricity, internet, phone, and office supplies.
Since this rate can change each year, it’s a good idea to check the official ATO website or use their home office expenses calculator to work out how much you can claim.
2. Do I need to work a minimum number of hours to claim?
No, there’s no minimum number of hours. But you must:
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Be working from home to do your job (not just checking a few emails).
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Have extra costs because of working from home (like using more electricity or internet).
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Keep records to prove your expenses.
3. What records do I need to show my hours worked from home?
To use the fixed rate method, you need to track every hour you work from home from 1 July 2024 to 30 June 2025. Write down your start and finish times for each day—this can be in a diary, spreadsheet, roster, or timesheet.
The ATO won’t accept estimates or “average weeks” anymore, so it’s important to keep records as you go.
If you use the actual cost method, you can keep a record for a 4-week period that shows your usual working-from-home routine.
4. How do I prove my phone and internet use for work?
If you're using the fixed rate, phone and internet are already included in the 70 cents per hour, so you can’t claim them separately.
If you use the actual cost method, you’ll need to figure out how much of your phone and internet use is for work. The best way is to:
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Keep a record for 4 weeks (in a diary or spreadsheet).
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Note down how much time or how many calls are work-related.
You can then use this percentage for the rest of the year.
5. Can I claim part of my rent if I work from home full time?
In most cases, no. If you're an employee working from home, you can’t claim rent, mortgage interest, or home insurance.
The only exception is if you have a dedicated area in your home that’s used only for business, like a home office set up as a place of business. But be careful: claiming this may have capital gains tax (CGT) implications if you sell your home later.
Need help with your work-from-home deductions?
The rules can be hard to follow, and a mistake could cost you. If you want to get your claim right and make the most of your deductions, speak to the team at R&K Taxation Experts. We're here to help make tax time easier and stress-free.