Know what the hourly rate already covers

The fixed rate bundles energy, internet, mobile and home phone use, stationery and computer consumables. You cannot claim those expenses again separately, including work phone use outside the home. Eligible equipment costs, such as the work-use decline in value of a desk or computer, can be considered separately.

For example, 1,000 recorded hours at 70 cents gives a $700 deduction for the covered expenses. This reduces taxable income by $700; the tax saving depends on your circumstances. It is not a $700 refund.

Keep hours as you work them

For the fixed rate, record your actual hours throughout the year. A diary, timesheet or reliable electronic log can help. An estimate based on a typical week is not enough. Keep at least one bill or receipt for each type of covered expense you personally incur, plus records for any separate equipment claim.

Set up one folder for bills and one simple hours log. Record changes in your working pattern as they happen, including weeks spent entirely in the office.

Compare the method your records can support

The actual cost method needs calculations and evidence for the additional work-related share of each expense. The whole household bill is not your deduction. Shared use and costs that would arise anyway need attention.

Compare both methods using your actual records before lodging. A larger claim is only useful if you qualify for it and can explain the calculation.