Expenses you can still claim on top of the fixed-rate method

Important disclaimer

The information in this article is general in nature and should not be considered financial or taxation advice. Everyone’s circumstances are different, and tax laws can be complex. We strongly recommend consulting with a qualified accountant or registered tax agent who can provide advice tailored to your specific situation. WFH Logbook Australia is a record-keeping tool and does not provide tax or financial advice.

More than just 70 cents per hour

Many Australians choose the fixed-rate method for its simplicity: log your hours, multiply by 70 cents, and you’re done. But what some people don’t realise is that the fixed-rate method doesn’t prevent you from claiming certain additional expenses on top of that hourly rate.

Understanding what you can claim separately could mean a larger deduction at tax time without the complexity of switching to the actual-cost method.

What the fixed-rate already covers

Before claiming anything extra, it’s important to know what’s already built into the 70 cents per hour. The fixed-rate covers:

• Energy costs (electricity and gas for heating, cooling, and lighting)
• Internet expenses
• Mobile and home phone usage
• Stationery and computer consumables
• General running costs associated with using office furniture and equipment while working from home (but not the decline in value of depreciating assets)

You cannot claim these items separately when using the fixed-rate method as that would be double-dipping.

What you can claim on top

The ATO allows you to claim certain expenses separately, provided they’re not already covered by the hourly rate and you have the supporting records. These include:

Decline in value (depreciation) for work-related assets

If you’ve purchased equipment or furniture that has a genuine work-related use, you may be able to claim the work-related portion of its decline in value separately:

• Has a genuine work-related use (with any private use appropriately apportioned)
• Not already covered by the running expenses included in the fixed-rate method (as depreciating assets are excluded)

Examples might include:

• A computer or laptop used predominantly for work
• An external monitor, keyboard, or mouse
• A printer or scanner
• A webcam or headset for video calls
• Office furniture like a desk or ergonomic chair (if the work-related use is significant)

The key distinction is whether the asset has a work-related decline in value that is not covered by the fixed-rate method. If an asset is used for both work and personal purposes, you can only claim the work-related portion of its decline in value.

Repairs and maintenance

If you pay for repairs to work-related equipment (such as fixing a laptop screen or servicing an office chair) these costs may be deductible separately.

Cleaning expenses for a dedicated home office

If you have a room set aside exclusively or almost exclusively as your home office, you may be able to claim the additional cleaning costs that relate specifically to that workspace.

How depreciation works

When claiming decline in value for assets, there are two main approaches:

Instant asset write-off

For assets costing $300 or less, you can generally claim an immediate deduction for the work-related portion in the year of purchase. For example, a $250 keyboard used 100% for work can be claimed in full.

Decline in value over time

For assets costing more than $300, you’ll need to depreciate the item over its effective life. The ATO publishes effective life guidelines for common assets. For example:

• Computers and laptops: 4 years
• Computer monitors: 4 years
• Office furniture: 10–15 years (depending on type)

You claim a portion of the cost each year based on the asset’s effective life and your percentage of work-related use.

Work-related percentage

If you use an asset for both work and personal purposes, you can only claim the work-related portion. For example, if you use a laptop 70% for work and 30% for personal use, you can only claim 70% of the depreciation.

Record-keeping requirements

To claim these separate expenses, you’ll need:

• Receipts or invoices for the items purchased
• Evidence of work-related use (for items over $300, you may need to track usage)
• Depreciation calculations showing how you worked out the deduction
• Floor plan or photos if claiming cleaning for a dedicated office

Keep these records for five years from the date you lodge your return.

Common mistakes to avoid

Double-dipping: Don’t claim general office supplies or internet costs separately as these are already in the fixed rate.

Overstating work use: Be honest about the work-related percentage. The ATO can ask for evidence.

Missing records: Without receipts, you can’t claim the deduction. Keep everything.

Claiming shared spaces as “dedicated”: Your office must be a room used exclusively or almost exclusively for work to claim cleaning costs.

How WFH Logbook Australia helps

While WFH Logbook Australia focuses on tracking your hours for the fixed-rate method, having accurate records of when and where you work can support your separate claims too. Your logged hours demonstrate the extent of your work-from-home activity, which can help substantiate the work-related use of equipment and furniture.

Final thoughts

The fixed-rate method is designed to be simple, but that doesn’t mean you should leave legitimate deductions on the table. If you’ve invested in equipment or furniture to work effectively from home, check whether you can claim depreciation on top of your hourly rate.

As always, keep good records and consider speaking to a tax professional if you’re unsure whether a particular expense qualifies.