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VikingOrange(Initiate)Initiate
9 July 2023

I'm looking at the Home Office Expenses Calculator on the ATO website, and if I select Actual Cost Method to calculate my WFH expenses (e.g. electricity and gas), I have a choice of "Actual Running Expenses" or "Own Estimate".


These 2 calculation approaches are different to what is mentioned on the dedicated Actual Cost Method webpage, which talks about having to calculate rates and kwh for each appliance I use etc.


I'm confused as to why there's a difference in approach? How is the expense calculator's method applied?


Home Office Expenses Calculator: https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=HomeOffice/questions&anchor=HomeOffice&anchor=HomeOffice/questions#HomeOffice/questions

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AnitaATO(Community Support)Community Support
11 July 2023

Hey @VikingOrange,


That's correct there is 2 calculation methods when using the actual cost method. Using the actual running expenses, you'll need to go through your bills and input the cost per unit of power you use and the average units you use per hour. This is to work out the costs per kw hour. You'll then work out the number of hours worked and times that by the amount you've calculated for cents per kw hour to work out the expense you can claim.

When using the estimate method, you only need the total cost of the bill and then the percent your claiming for work related use.


You can read more about the actual cost method on our website.

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Most helpful reply

AnitaATO(Community Support)Community Support
11 July 2023

Hey @VikingOrange,


That's correct there is 2 calculation methods when using the actual cost method. Using the actual running expenses, you'll need to go through your bills and input the cost per unit of power you use and the average units you use per hour. This is to work out the costs per kw hour. You'll then work out the number of hours worked and times that by the amount you've calculated for cents per kw hour to work out the expense you can claim.

When using the estimate method, you only need the total cost of the bill and then the percent your claiming for work related use.


You can read more about the actual cost method on our website.

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Why does the ATO Home Office Expenses Calculator Show Different Calculation Methods For Actual Cost? | ATO Community