Are you one of the many people who work from home or run a business from your home? If so, did you know you could potentially claim back some of your home-related expenses through your taxes? With flexible working becoming more common and many of us embracing the benefits of remote work (not to mention the savings on fuel costs and the luxury of wearing pyjama bottoms during video calls—let’s keep that between us!), there’s more to working from home than just convenience.
Why It Pays to Work from Home
In today’s climate of rising living costs, every cent counts. Many people working from home don’t realise they could be entitled to tax deductions for certain expenses related to their home office or business. These can help offset the cost of running a business or simply working from home.
What Can You Claim?
While the specifics vary depending on your circumstances, you may be able to claim a portion of your home expenses, such as:
- Energy Bills: You can claim a percentage of your electricity, heating, and water bills based on the space you use for work.
- Internet & Phone Costs: If you use your phone or internet for work purposes, a portion of these costs can also be claimed.
- Office Equipment & Supplies: Items like computers, office furniture, and other work-related supplies may also be eligible for tax relief.
Keep Track of Your Expenses
To make sure you can claim back these expenses, it’s crucial to keep accurate records. This includes retaining receipts, invoices, and a clear breakdown of how you’ve worked out your claims (e.g. calculating the proportion of your home used for work). Detailed records will make it much easier when it comes time to file your tax return.
Speak to an Expert
Tax rules can be complex, and each person’s situation is unique. It’s always a good idea to consult an accountant or reach out to the ATO if you’re unsure about what you can claim or need advice on your tax deductions. They can provide tailored guidance to ensure you’re making the most of any potential savings.
