Working from home has become a common practice for many Australians, and with it comes the opportunity to claim tax deductions for expenses incurred. Understanding the guidelines set by the Australian Taxation Office (ATO) can help you make the most of your tax return Australia and ensure accurate tax lodgement Australia. Here are 10 possible deductions you can claim while working from home:
1. Electricity and Gas Expenses
You can claim a portion of your energy expenses for heating, cooling, and lighting your workspace. Using the fixed rate method, the ATO allows 67 cents per hour worked from home, which includes energy costs.
2. Internet Expenses
If you use the internet for work purposes, you can claim a percentage of your internet bills. The amount must be apportioned based on work-related use.
3. Phone Expenses
Mobile and home phone usage for work can also be claimed. Keep records of your work-related calls to calculate the deductible portion.
4. Stationery and Office Supplies
Items like pens, paper, and printer ink used for work purposes are deductible. There’s no specific limit, but you must keep receipts to substantiate your claims.
5. Decline in Value of Office Furniture
You can claim the depreciation of office furniture such as desks and chairs. If the item costs $300 or less, you can claim an immediate deduction.
6. Decline in Value of Equipment
The depreciation of computers, laptops, and other equipment used for work can be claimed. For items costing more than $300, the deduction is spread over the asset’s effective life.
7. Repairs and Maintenance
Repairs to work-related equipment or furniture are deductible. For example, fixing a broken office chair or computer used for work.
8. Cleaning Expenses
If you have a dedicated home office, you can claim cleaning expenses for that space. Ensure the area is exclusively used for work to qualify.
9. Occupancy Expenses
In limited cases, you may claim a portion of rent or mortgage interest if you have a dedicated home office. This is generally applicable to sole traders or those running a business from home.
10. Computer Consumables
Items like USB drives, power boards, and chargers used for work purposes are deductible. If they cost $300 or less, you can claim them immediately.
How Do I Submit My Tax in Australia?
To claim these deductions, you can use either the fixed rate method or the actual cost method. The fixed rate method simplifies the process by allowing 67 cents per hour worked from home, covering energy, internet, and phone expenses. The actual cost method requires detailed records of all expenses incurred.
How to Get the Best Tax Refund in Australia
Maximizing your refund involves keeping accurate records and understanding which deductions apply to your situation. If you need help to do your books of accounts in Australia, consulting a registered Tax Agent can ensure compliance with ATO guidelines and help you claim every eligible deduction.
Disclaimer: This is general advice and may not apply to everyone. We always recommend speaking to us in person, as every individual’s situation is unique. Our team can provide tailored advice to help you achieve the best outcomes for your tax return and lodgement in Australia. Contact us today for personalized assistance!