Working From Home? Here's What You Can Actually Claim

Whether you're running a business from your spare room or clocking in a few admin hours at the kitchen bench, you’ve probably wondered what you can actually claim working from home — and what’s wishful thinking (no, your air fryer doesn’t count).

This episode clears up the confusion around WFH deductions with a no-fluff breakdown of the ATO-approved methods you can use to claim - and how to get it right. I’ll walk you through the two main options available, who they’re best suited for, and exactly what you can and can’t include. If you’re second-guessing what counts or relying on TikTok tips, this one’s for you.

With the ATO keeping a close eye on these deductions, it’s more important than ever to understand the rules, track your expenses properly, and stay on top of your records. You’ll leave this episode knowing the difference between fixed rate and actual cost methods, what each covers, and what to avoid so you don’t land in hot water at tax time.

Here’s what’s covered:

• There are two ways to claim: the fixed rate method and the actual cost method - each has specific requirements
• Fixed rate covers things like internet, phone, power, and stationery
• Actual cost lets you claim what you’ve spent
• You can’t double-dip or mix methods, and some items (like rent) are only claimable under strict conditions for business owners
• Records matter: keep invoices, receipts, and diaries to support your claim
• Your tax agent is your best friend for working out what applies to your setup

Links & Resources Mentioned in This Episode:

• Grab our free Xero Money Saver guide here
• ATO Work From Home resource here