Work From Home and Car Claims 2024–25
Getting on top of your 2024–25 tax return early gives you the best chance to maximise deductions and avoid trouble with the ATO. Two areas often under scrutiny are work from home expenses and car-related claims. Knowing the rules — and keeping the right records — is critical. Below, we break down what you need to know to claim correctly and confidently.
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Claiming Work From Home Expenses Under ATO Rules 2024-25
If you work from home regularly, you’re entitled to claim certain costs, even if your workspace is your dining table. Most people use the fixed rate method: 70 cents per hour for the 2024–25 financial year. This covers phone, internet, power, gas, stationery, and consumables. On top of that, you can still claim depreciation for assets like desks or laptops (costing over $300).
To claim, you must:
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Keep a daily record of hours worked from home (for the entire year).
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Keep one current invoice each for internet, phone, and energy.
Alternatively, the actual cost method is available but requires detailed records and calculations.
ATO Requirements for Car Use Claims in 2024-25
If you use your personal vehicle for work, you may be eligible for a deduction — regardless of whether your employer reimburses you. Reimbursements (like cents per kilometre or flat amounts) are assessable income and will appear on your payment summary.
There are two ways to claim:
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Cents per kilometre method (up to 5,000 kms): multiply business kms by 88 cents. Keep a diary or notes to support how you estimated the kilometres.
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Logbook method: keep a 12-week logbook showing odometer readings, dates, reasons, and distances. You can use the resulting business percentage for 5 years.
What Trips Qualify for ATO Car Deductions in 2024-25?
Car claims are only valid if the trips are business or employment-related. Deductible travel includes:
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Travelling to non-regular workplaces
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Driving between job sites
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Carrying bulky equipment
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Attending client meetings or seminars
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Commuting to a second job
Non-deductible travel includes: -
Commuting to your regular workplace
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Where your employer covers car expenses directly
For the logbook method, receipts for car expenses (fuel, servicing, insurance, registration, depreciation) must be kept. Car logbooks can be bought from Officeworks or online.
We can help you with the record-keeping and logbook requirements. Please feel free to contact us if you have any questions. Work From Home and Car Claims 2024–25
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