The ATO gives you two ways to claim working-from-home running costs. You can't mix them for the same expenses, so it's worth running both numbers before you decide. This works out each method side by side, plus depreciation and an occupancy claim if you run your business from a dedicated space.
Hours worked from home
Based on your diary, timesheet or calendar record — the ATO requires a genuine record of hours, not an estimate at tax time.
48 accounts for a typical 4 weeks of leave.
Your annual running costs
Total annual bills, before apportioning for business use — we'll apply your business-use percentage below.
A reasonable estimate based on hours worked from home versus total time the service is used — not just "half the house."
Equipment depreciation
Neither method covers the cost of your desk, chair, monitor or computer — these are claimed separately, based on business-use percentage and useful life.
If you're not sure, a rough guide is the item's cost ÷ its effective life, × business-use %.
Tools like QuickBooks Self-Employed or Hnry log business-use percentages against real transactions through the year, so this isn't a once-a-year reconstruction job.
See a tool that automates this →