"I Work From Home Sometimes" Is Not a Record. Here's What the ATO Actually Wants to See.
The Two Ways to Claim
Fixed rate method. You claim a set rate per hour worked from home. The rate covers energy, phone, internet and stationery, so you cannot also claim those items separately. The rate is set by the ATO and updated, so confirm the current figure.
Actual cost method. You calculate the work-related share of each expense, such as electricity, internet and phone, and claim those amounts. It requires more detailed records and can produce a higher or lower result depending on your situation.
What Records Support the Claim
For the fixed rate method, the key is a record of the actual hours you worked from home across the whole year, such as timesheets, rosters, a diary, or a calendar. A general estimate or a note that you "work from home a few days a week" is generally not enough.
You will also generally need evidence that you incurred the expenses the rate is meant to cover, for example bills for energy, internet or phone.
For the actual cost method, you need the bills themselves and a reasonable, documented basis for the work-related portion.
Where Claims Go Wrong
- Estimated hours with no supporting record. This is the most common reason claims are reduced.
- Claiming a rate and also claiming items it already covers. That is double counting.
- Claiming for time that is simply the commute-free version of an office day, without a regular, genuine work arrangement behind it.
- No record kept during the year, then reconstructed from memory at tax time.
What to Do
- Decide which method suits you and apply it consistently.
- Keep a running record of hours from home, not an end-of-year guess.
- Keep the supporting bills together with the hours record.
RBizz confirms which method gives you the better outcome and what you need to keep. Get in touch before the end of the financial year so the records are right from the start.
