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How to use the digital home office diary in Work Tank

Learn how to track your home office hours and expenses using the digital home office diary in Work Tank.

The digital Home Office Diary in Work Tank helps you keep track of your home office hours and expenses for an accurate tax deduction.

Whether you're using the Fixed Rate Method or Actual Cost Method, the Work Tank home office diary makes it easy to log hours, set expense claims, and maximise your home office deduction.

Fixed Rate Method

With the Fixed Rate Method, your home office deduction is calculated solely based on the hours you work from home, logged in the diary.

Steps to Use the Fixed Rate Method:

  1. Navigate to the Home Office tab in the Work Tank.

  2. Select the Fixed Rate Method: Go to the dropdown menu and choose the Fixed Rate Method.

  3. Add Your Work Hours: Click 'Add Log' and enter the hours worked each time. Your total hours will automatically update, and TaxTank will multiply them by the ATO’s hourly rate to calculate your deduction.
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  4. Starting with an Existing Logbook?

    1. If you've been using TaxTank to record your home office hours, as soon as you select a method in the home office diary we will automatically move those entries to the home office diary logbook.

    2. If you have prior records outside of TaxTank, you can add them as one entry (like an "opening balance") instead of adding each past log separately. For safekeeping, store a copy of your old logbook in the Spare Tank.

  5. Need to export your Logbook?: To create an exportable record of your hours in excel, simply click the Export button.
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Note: When you select this method, running costs (e.g., electricity, internet) are not claimable separately and are set to 0% in the expense categories.

Hint: Logging hours consistently throughout the year ensures you capture every deduction. Whilst the logbook only updates the Fixed Rate method in TaxTank, You can keep a logbook using any of the methods.

Actual Cost Method

The Actual Cost Method allows you to claim individual home office expenses based on your work-related usage. With Work Tank, you can set the percentage for each category, and TaxTank handles the rest.

Steps to Use the Actual Cost Method:

  1. Select the Actual Cost Method: Choose this option from the dropdown menu.

  2. Set Claim Percentages: For each expense category (electricity, internet, phone, etc.), adjust the sliders to match your work-related use, from 0% to 100%. Click Update to save your settings.

    Note: Once you select the Actual Method and set you claim percentage for each category, we will automatically update any existing expense claims in TaxTank to ensure accuracy and consistency.
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  3. Automated Allocation from Bank Feeds: Once your claim percentages are set, any allocations made from live bank feeds or rules you set will apply the correct percentages automatically.
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Hint: If your work situation changes, simply adjust the sliders, click Update, and TaxTank will refresh all allocated expenses for the financial year. Also, continue to log your hours for added accuracy, as this allows you to switch between methods and choose the one with the largest deduction.

Not sure which method to use? Check out this article for more information about the different methods and the ATO rules.

Why is the Claim Percentage greyed out for some Work Tank expense categories?

If the Claim Percentage field is greyed out when allocating a Work Tank expense, this is usually because the expense is one of the ATO's Home Office Actual Cost categories.

Categories such as:

  • Electricity & Gas

  • Cleaning

  • Internet

  • Telephone

  • Mobile Phone

don't have their claim percentage set on each individual transaction. Instead, the percentage is managed through your Home Office Diary.

How do I change the claim percentage?

  1. Go to Work Tank.

  2. Open the Home Office tab.

  3. Select the Actual Cost Method.

  4. Update the claim percentage for the relevant expense category.

  5. Click Update to save your changes.

TaxTank will automatically apply these percentages to eligible transactions allocated to those categories.

Why can't I edit the percentage when allocating a transaction?

For Home Office Actual Cost categories, the claim percentage is controlled by your Home Office Diary rather than individual transactions. This ensures the same work-related percentage is applied consistently across all eligible expenses.

Because of this, the Claim Percentage field is locked during transaction allocation.

FAQs

Q: Which expense categories use the Home Office Diary?
​A: Categories that form part of the ATO's Home Office Actual Cost Method, including Electricity & Gas, Cleaning, Internet, Telephone and Mobile Phone.

Q: Can I set a different claim percentage for each transaction?
​A: No. These categories use the percentage set in your Home Office Diary so it is applied consistently across all eligible transactions.

Q: My claim percentage shows 0%. What do I need to do?
​A: Go to Work Tank → Home Office, select the Actual Cost Method, then enter the work-related claim percentage for each applicable expense category and click Update. TaxTank will then use those percentages when calculating your deductions.

If you haven’t already, give TaxTank a try today with a 14 day free trial! Our easy-to-use platform makes tax time a breeze, saving you time and helping you get the most out of your deductions. Get started now and see how we can help streamline your tax management. Start your free trial with TaxTank

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