Your Deduction (Fixed Rate)
$804.00
Estimated Tax Saving
$261.30
Total Hours
1,200
Rate
67c/hr
Fixed Rate
$804.00
1200 hrs x 67c/hr
Tax saving: ~$261.30
Actual Cost
$3,500.00
Based on actual expenses entered
Tax saving: ~$1,137.50
The actual cost method gives you a higher deduction of $3,500.00. However, the actual cost method requires detailed records of all expenses.
Understanding your home office deduction methods
Fixed rate method (67 cents per hour)
The revised fixed rate method allows you to claim 67 cents for each hour you work from home. This covers electricity, phone, internet, stationery, and computer consumables. You must have a dedicated work area and keep a record of hours worked (e.g. a timesheet or diary for a representative 4-week period).
Actual cost method
Under the actual cost method, you calculate the actual work-related portion of each expense. This requires detailed records including receipts and a reasonable basis for apportioning costs (e.g. floor area of your home office, time used for work).
Which method is better?
The fixed rate method is simpler but may give a lower deduction if your actual expenses are high. The actual cost method can yield a higher deduction but requires comprehensive records. You cannot claim the same expense under both methods.
ATO-Aligned: Uses the revised fixed rate of 67 cents per hour effective from 1 July 2022. You can separately claim depreciation of office furniture under both methods.
Disclaimer: This calculator provides estimates based on current ATO rates and thresholds for the 2024–25 financial year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax agent before making financial decisions. Read our terms
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