Are you working from home and want to claim running expense?

Please refer to the guidance how to estimate the usage work-relate to claim the tax deduction.

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FY 2025 - Track WFH_s hours.xlsx

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Expense_Summary.xlsx

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I.    Device data-usage expenses

1.   Requirement

• Must have a diary for four continued weeks

• All the receipts must be recorded

• Not reimbursed by the employer

• Have a separate home office

2.   Example

Example 1: internet expenses - sole user – time basic

Scenario:

1. You work from home 3 days/ week, 8 hours/ days.

2. Private use: watching TV, use mobile connection 4 hours/ weekdays, and 16 hours for weekend.

Questions: How to determine the actual expense incurred using the time basic method?

Answer:

• Total working hours in 4 weeks = 3 days/ week x 8 hours/ days x 4 weeks = 96 hours

• Private use= (4 hours/ day x 5 weekdays + 16 hours weekend) x 4 weeks = 144 hours

• Total hours internet used: 96 + 144 = 240 hours

% Internet used for work = 96/240 x 100 = 40%

Example 2: internet expenses - apportion for other users

Scenario:

• You work from home 3 days/ week, 8 hours/ days.

• Private use: watching TV, use mobile connection 4 hours/ weekdays, and 16 hours for weekend.

• Assume that your wife/ husband also uses the internet connection for a similar period time in the private use

Questions: How to determine the actual expense incurred using the time basic method?

Answer:

• Total working hours in 4 weeks = 3 days/ week x 8 hours/ days x 4 weeks = 96 hours

• Private use= ((4 hours/ day x 5 weekdays + 16 hours weekend) x 4 weeks) x 2= 288 hours

• Total hours internet used: 96 + 288 = 384 hours

  % Internet used for work = 96/384 x 100 = 25%

II.   Phone

1.   Requirement

• Must have a diary for 4 continued weeks

• All the receipts must be recorded

• Not reimbursed by the employer

2.   How it works?

For deductions for home telephone expenses, the following formula is an acceptable way to calculate the work-related proportion work-related calls (incoming and outgoing) ÷ total calls (incoming and outgoing)

For mobile phone expenses, in determining a work-related proportion, the following factors are elements that can be considered

• number of work calls compared to private calls

• time used for work calls compared to private calls

• time used in different functions for work related purposes compared to private purposes - for example, some taxpayers may use the camera and gaming applications exclusively for private use whereas other taxpayers may require the camera and many applications for work purposes

• the time spent using the mobile telephone for work-related and private purposes each day

• any employer requirements or restrictions for work use of the mobile phone for work purposes, and

• work-related and private-use proportions of data usage (see below).

• The relevance of type of use on a mobile phone can be significant. Thus, if a taxpayer predominantly uses a mobile phone for phone calls, then analysis of phone call use will provide the most relevant measure of use. In such cases the guidelines provided for home telephone use are relevant.

3. Example:

Scenario:

• You have a prepaid mobile phone plan that costs you $50 per month.

• You do not receive a monthly bill, so you keep a record of the time you spend using your phone for work-related phone calls and using the mobile internet for work for a continuous 4-week period.

• During this 4-week period, you spend 25 hours making work phone calls and using your mobile internet for work and you spend 75 hours using your phone for private purposes.

• You worked for 11 months during the income year, having had one month of leave.

Questions: How to determine the usage work-related expense?

Answer:

• Total hours = 25 + 75 = 100 hours

• % use percentage for work = 25 work hours ÷ 100 total hours = 25%

• Amount can claim in the TR = 25% × $50 × 11 months = $138

III.   Electricity And Gas For Heating, Cooling And Lighting

1. Requirement

• Must have a diary for timesheet for the whole FY

• All the receipts must be recorded

• Not yet reimburse by the employer

• Have a separate home office

2. How it works?

You can work out the cost of your electricity and gas (energy expenses) for heating, cooling and lighting by using the:

• cost per unit of power you use (your utility bill has this information)

• average units you use per hour, which is the power consumption (this information may be found in the manufacturer information, the star energy rating label or by searching the internet) and is

  - per kilowatt (kw) hour for each electrical appliance, equipment or light you use

  - per megajoule (MJ) hour for gas heating appliances you use total annual hours used for work-related purposes by checking your record of hours worked or your diary

3.     Example

Example 1

Scenario:

• Total work from home hours: 768 hours

• Sitting in a separate room of your house and always uses the AC in the room. Based on the manufacturer’s information, the AC unit costs 1.09 kW per hour to run PC + Light: - 100 W/ hours - 28c per kW hour

Questions: How to calculate the actual expense?

Answer:

• Total kw/ hour= 1.09 + 0.1 = 1.19 kW

• Cost per hour = 1.19kW x 28c = 33.04 c

Actual expense = 33.04c x 768 hours = $253.74

Example 2:

Scenario:

• Total work from home hours: 768 hours

• Your house only has one AC and it contributes to the whole house. Based on the manufacturer’s information, the AC unit costs 1.09 kw per hour to run

• Sitting in a separate home office, which occupies an estimated 20% area of your house. - PC + Light: 100 w/ hours - 28c per kw hour

Questions: How to calculate the actual expense?

Answer:

• Total kw/ hour= 1.09 x 20% + 0.1 = 0.318 kW/ hour

• Cost per hour = 0.318 kW x 28c = 8.9 c

Actual expense = 8.9c x 768 hours = $68.38