Are You Working from Home and Want to Claim Running Expenses?

If you're working from home, you may be eligible to claim tax deductions for running expenses. Here's a simple guide to help you estimate your work-related usage.

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FY 2025 - Track WFH_s hours.xlsx

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🛜 Device Data-Usage Expenses

Requirements

All of the following conditions must be fulfilled to ensure compliance:

✅ Must have a diary for four continued weeks

✅ All the receipts must be recorded

✅ Not reimbursed by the employer

✅ Have a separate home office

Example 1: Internet expenses – Sole User – Time-Based Method

Scenario:

• You work from home 3 days a week, 8 hours per day.

• Private use includes watching TV or using mobile data for 4 hours each weekday and 16 hours over the weekend.

❓Question: How do you determine the actual expense, using the time-based 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 internet usage hours: 96 + 144 = 240 hours

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

  
  

Example 2: Internet Expenses - Apportion for Other Users (Additional users)

Scenario: 

Same as above, but your spouse also uses the internet for a similar amount of private use:

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

• Private use includes watching TV and using mobile data for 4 hours on weekdays and 16 hours over the weekend.

• Assume your spouse also uses the internet for a similar amount of private use during the same period.

❓Questions: How do you determine the actual expense using the time-based method?

❗Answer:

• Total work hours in 4 weeks = 96 hours (same as above)

• 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

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

📞 Phone

Requirement

To remain compliant, the following conditions must be met in full:

✅ Keep a diary for four consecutive weeks.

✅ Record all receipts.

✅ Ensure the costs haven't been reimbursed by your employer.

How it works?

To calculate the work-related portion of home telephone expenses, you can use the following formula:

Work-related calls (incoming + outgoing) ÷ Total calls (incoming + outgoing)

For mobile phone expenses, the work-related proportion can be determined by considering the following factors:

• The number of work calls compared to private calls

• Time spent on work calls versus private calls

• Time spent using different functions (e.g., camera, apps) for work versus personal use

  • For example, some people may use the camera and gaming apps only for personal use, while others may need them for work

• Daily time spent using the mobile phone for work versus private purposes

• Any employer-imposed usage requirements or restrictions, and

• The proportion of work-related versus private data usage

  
  

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, analyzing call logs will give the most accurate measure of work-related use. In such cases the guidelines provided for home telephone use are relevant.

Example:

Scenario:

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

• Since you do not receive a monthly bill, you keep a record of the time spent on work-related phone calls and mobile internet use over a continuous 4-week period.

• During this 4-week period:

  • You spend 25 hours on work-related phone calls and mobile internet use.

  • You spend 75 hours using your phone for personal purposes.

• You worked for 11 months during the income year, taking 1 month of leave.

  
  

❓Questions: How do you determine the work-related expense?

❗Answer:

• Total hours = 25 + 75 = 100 hours

• Work-use percentage = 25 work hours ÷ 100 total hours = 25%

  Claimable amount in the TR = 25% × $50 × 11 months = $138

💡 Electricity and Gas for Heating, Cooling and Lighting

Requirement

To remain compliant, the following conditions must be met in full:

✅ Maintain a timesheet or diary for the entire financial year (FY).

✅ Record all receipts.

✅ Make sure the costs haven't been reimbursed by your employer.

✅ Must maintain a dedicated home office.

How it works?

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

• The cost per unit of power (as shown on your utility bill).

• The average units per hour for each appliance or light, sourced from manufacturer info, energy ratings, or online references:

  • 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, based on your record of hours worked or your diary

Example 1:

Scenario:

• Total work from home hours: 768 hours

• You work in a separate room and always run the AC. Based on the manufacturer’s information; the AC unit costs 1.09 kW per hour; your PC + light consume 100 W/hour.

• Electricity costs 28c per kWh.

❓Questions: How do you calculate the actual expense?

❗Answer:

• Total usage = 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 entire house shares one AC. Based on the manufacturer’s information, the AC consumes 1.09 kw per hour.

• You work in a separate room that occupies approximately 20% of your house’s area.

• PC + light consume 100 W/hour, electricity is 28c per kWh.

❓Questions: How do you 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