Home Office Rate 2026: ATO Deduction Rates & Calculator

Australian taxpayers working from home can claim deductions using the ATO home office rate of 67 cents per hour for 2026, or alternatively calculate actual expenses for potentially higher deductions. The Australian Taxation Office provides two distinct methods to claim work-from-home expenses: the simplified fixed rate method and the detailed actual cost method. Each approach has specific eligibility requirements, record-keeping obligations, and calculation rules that determine your final deduction amount.

Understanding which method suits your situation best can significantly impact your tax return. Moreover, recent changes to ATO guidelines following post-COVID work arrangements have refined eligibility criteria and documentation requirements. Whether you work from home occasionally or full-time, choosing the right calculation method ensures you maximize legitimate deductions while maintaining compliance with tax regulations.

TL;DR

• Fixed rate method: Claim 67 cents per hour worked from home in 2026, covering most running expenses
• Actual cost method: Calculate real expenses including occupancy costs, utilities, and equipment depreciation for potentially higher deductions
• Eligibility requirements: Must work from home for income-producing activities with proper record-keeping and substantiation
• Key changes: Updated ATO guidance reflects post-pandemic work arrangements with stricter documentation requirements

Home Office Rate 2026: Current ATO Rates and Methods

The Australian Taxation Office maintains the 67 cents per hour fixed rate for home office deductions throughout 2026, continuing the same rate established in previous years. This simplified method allows eligible taxpayers to claim deductions without calculating individual expense components. However, the ATO also provides an actual cost method that may yield higher deductions for taxpayers with substantial home office expenses.

Two primary calculation methods determine how much you can claim for working from home expenses. Furthermore, understanding the differences between these approaches helps taxpayers choose the most beneficial option for their circumstances.

Fixed Rate Method: 67 Cents Per Hour

The fixed rate method provides a streamlined approach to claiming home office deductions at 67 cents for each hour worked from home. This rate covers running expenses including electricity, gas, phone costs, internet expenses, computer consumables, and stationery. Additionally, the fixed rate incorporates decline in value for home office equipment like computers, printers, and furniture.

Taxpayers using this method cannot claim separate deductions for expenses already covered by the fixed rate. Nevertheless, you can still claim additional costs such as phone calls, internet plans exclusively for work, or equipment purchases over $300 that require separate depreciation calculations.

Actual Cost Method: Detailed Expense Calculation

The actual cost method requires taxpayers to calculate real expenses incurred while working from home, potentially resulting in higher deductions than the fixed rate. This approach includes running expenses, occupancy costs, and equipment depreciation based on actual usage and work-related percentages. Moreover, taxpayers must maintain detailed records of all expenses and demonstrate the work-related portion of each cost.

Occupancy costs under this method include rent, mortgage interest, council rates, land taxes, house insurance, and repairs. However, these expenses require careful calculation based on the floor area used for work and the time spent working from that space.

Expense Category	Fixed Rate Method	Actual Cost Method
Electricity & Gas	Included in 67c/hour	Calculate actual usage
Internet & Phone	Included in 67c/hour	Work-related percentage
Equipment Depreciation	Included in 67c/hour	Separate calculation required
Occupancy Costs	Not claimable	Floor area × time percentage

Key Changes from Previous Years

The 2026 home office rate remains unchanged from 2025 at 67 cents per hour, providing consistency for taxpayers familiar with the previous year’s calculations. However, the ATO has refined eligibility requirements and record-keeping obligations following extensive review of post-pandemic work arrangements. Consequently, taxpayers must demonstrate genuine work-from-home activities rather than merely having the option to work remotely.

Significant changes from earlier years include stricter documentation requirements introduced after 2022. Previously, the ATO offered a temporary simplified method during COVID-19 that allowed claims without detailed records. Currently, all taxpayers must maintain comprehensive records regardless of which calculation method they choose.

Eligibility Requirements for Home Office Claims

Taxpayers must meet specific eligibility criteria to claim home office deductions using either calculation method. Primarily, you must work from home to fulfill employment duties or generate income, not simply because remote work is available. Additionally, the work performed must directly relate to your income-producing activities and occur in a dedicated or shared space within your residence.

• Work from home for income-producing activities
• Incur additional running expenses due to working from home
• Maintain detailed records of hours worked and expenses incurred
• Use a designated area of your home for work purposes
• Demonstrate the work-related portion of claimed expenses

Record-keeping requirements include maintaining a diary of hours worked from home, receipts for all claimed expenses, and evidence of the work-related use of your home space. Furthermore, taxpayers must retain these records for five years after lodging their tax return. The ATO may request substantiation during audits or compliance reviews, making accurate record-keeping essential for successful claims.

Fixed Rate Method: 67 Cents Per Hour

The Australian Taxation Office sets the home office rate at 67 cents per hour for the 2026 financial year, maintaining the same rate established in 2022. This fixed rate method provides a simplified approach for calculating work-from-home deductions without requiring detailed expense tracking for individual cost components.

Current Fixed Rate Coverage

The 67 cents per hour rate covers multiple home office expenses under a single calculation. Specifically, this rate includes electricity costs for lighting, heating, and cooling your workspace. Moreover, it encompasses gas expenses, phone costs including mobile and landline usage for work purposes, and internet charges related to work activities.

Additionally, the fixed rate covers stationery and computer consumables such as printer paper, ink cartridges, and pens used for work tasks. However, taxpayers can claim separate deductions for items not included in the fixed rate, such as office furniture depreciation, computer equipment depreciation, and occupancy expenses like rent or mortgage interest.

Calculating Your Total Deduction

Calculating your home office deduction using the fixed rate method requires multiplying 67 cents by the total hours worked from home during the financial year. For instance, working 8 hours daily for 200 days equals 1,600 hours, resulting in a deduction of $1,072 (1,600 × $0.67).

Furthermore, you can add separate claims for items excluded from the fixed rate. These additional deductions might include office chair depreciation, desk depreciation, or professional development courses. Consequently, your total home office claim combines the fixed rate calculation with any eligible separate deductions.

Record Keeping Requirements

The fixed rate method still requires maintaining comprehensive records of hours worked from home throughout the financial year. Taxpayers must keep a diary, timesheet, or roster showing the specific hours and dates of home-based work. Additionally, you need evidence demonstrating that working from home was necessary for income-producing activities.

• Detailed diary of hours worked from home
• Evidence of work-from-home arrangements (emails, contracts, policies)
• Receipts for any separate deductions claimed outside the fixed rate
• Records showing the work-related use of your home space
• Documentation retained for five years after lodging your return

Importantly, the ATO may request substantiation during compliance reviews or audits. Therefore, accurate record-keeping becomes essential for defending your claims and avoiding potential penalties or adjustments.

Limitations and Exclusions

The fixed rate method excludes several significant expense categories that require separate calculations if claimed. Notably, occupancy expenses such as rent, mortgage interest, council rates, and house insurance cannot be claimed using the 67 cents per hour rate. Similarly, depreciation of office furniture, computer equipment, and other capital items requires individual depreciation schedules.

Moreover, the fixed rate applies only to additional running expenses incurred due to working from home. Consequently, you cannot claim expenses that would occur regardless of your work arrangements. For example, basic internet connection fees that you would pay for personal use cannot be fully attributed to the fixed rate calculation.

Finally, taxpayers using the fixed rate method cannot simultaneously claim the actual cost method for the same expense categories. Once you choose the fixed rate approach, you must apply it consistently for all covered expenses throughout the entire financial year. However, you can switch methods between different financial years based on which approach provides the greater deduction benefit.

Actual Cost Method: Calculating Real Expenses

Business owners and employees who incur substantial home office expenses often find the actual cost method delivers greater tax deductions than the fixed rate approach. This comprehensive calculation method requires detailed record-keeping but allows you to claim the precise work-related portion of your home running costs and occupancy expenses.

When to Choose Actual Cost Over Fixed Rate

The actual cost method becomes advantageous when your real home office expenses exceed what the 67 cents per hour fixed rate would provide. Taxpayers with dedicated home offices, expensive utility bills, or significant equipment depreciation typically benefit from this approach. Additionally, those who work from home extensively throughout the year often discover their actual costs surpass the fixed rate calculation.

Furthermore, the actual cost method allows claims for occupancy expenses that the fixed rate excludes entirely. Consequently, homeowners paying mortgage interest or substantial council rates may achieve better outcomes through detailed expense tracking rather than the simplified hourly rate.

Occupancy Expenses: Property-Related Costs

Occupancy expenses represent the costs of owning or renting your property that continue regardless of usage levels. These fixed property costs include rent payments, mortgage interest, council rates, land tax, house insurance premiums, and body corporate fees for apartments or units.

Importantly, you can only claim occupancy expenses if you use a dedicated area of your home exclusively for work purposes. The ATO requires that this space functions solely as your office during business hours and cannot serve dual purposes as a family room or bedroom. Therefore, kitchen tables or shared living spaces don’t qualify for occupancy expense claims.

• Rent: Weekly or monthly rental payments to landlords
• Mortgage interest: Interest portion of home loan repayments (not principal)
• Council rates: Annual local government charges
• Insurance: Building and contents insurance premiums
• Body corporate fees: Strata or community title charges

Running Expenses: Variable Usage Costs

Running expenses encompass the variable costs that increase due to your home office usage. These operational expenses include electricity bills, gas charges, telephone costs, internet fees, cleaning supplies, and minor repairs related to your work area.

Unlike occupancy expenses, you can claim running expenses even when working from shared spaces like dining rooms or bedrooms. However, you must calculate the work-related portion based on actual usage patterns and time spent working from home. Moreover, these expenses must represent additional costs incurred specifically due to your work activities.

Expense Category	Claimable Examples	Non-Claimable Items
Electricity	Additional lighting, computer usage, heating/cooling	Base household consumption
Phone/Internet	Business calls, additional data usage	Basic connection fees for personal use
Cleaning	Extra cleaning due to work activities	Regular household cleaning

Equipment and Furniture Depreciation

Capital items used in your home office depreciate over their effective life according to ATO depreciation schedules. Office furniture, computers, printers, chairs, and filing cabinets all qualify for depreciation deductions when used for work purposes.

The ATO provides specific effective life periods for different asset categories. For instance, computers and software typically depreciate over four years, while office furniture depreciates over 13 years. Additionally, items costing less than $300 can be claimed immediately as small business assets, while more expensive items require depreciation calculations over multiple years.

Furthermore, you must calculate the work-related percentage for each asset based on actual business usage. A computer used 70% for work activities allows you to claim 70% of its annual depreciation as a tax deduction.

Business Use Percentage and Apportionment

Accurate apportionment calculations form the foundation of actual cost method claims. The ATO requires reasonable methods to determine what percentage of each expense relates to work activities versus personal use. Floor area calculations work best for occupancy expenses, while time-based apportionment suits running expenses and equipment usage.

For dedicated home offices, divide your office floor area by your home’s total floor area to establish the occupancy percentage. However, for shared spaces, calculate the percentage based on work hours versus total usage time. Additionally, seasonal variations in usage patterns may require different apportionment percentages throughout the year.

Notably, salary calculator tools can help estimate the tax benefits of different deduction amounts when comparing actual costs versus fixed rate methods. Therefore, calculating both approaches ensures you maximize your legitimate home office deductions while maintaining ATO compliance.

Home Office Rate Calculator and Examples

Calculating your home office rate deduction requires following specific ATO formulas and understanding the practical differences between fixed rate and actual cost methods. The ATO work from home calculator simplifies these calculations, but understanding the underlying mathematics helps you choose the most beneficial approach for your circumstances.

Fixed Rate Method Calculations

The fixed rate method multiplies your work-from-home hours by $0.67 per hour for the 2025-26 financial year. This calculation covers running expenses including electricity, gas, phone, internet, and stationery costs. However, you can claim additional deductions for office equipment depreciation and occupancy expenses on top of this base rate.

For example, a full-time employee working 8 hours daily from home for 250 working days annually calculates: 2,000 hours × $0.67 = $1,340 in fixed rate deductions. Additionally, they might claim $800 for computer depreciation and $600 for dedicated office space occupancy costs, totaling $2,740 in home office deductions.

Actual Cost Method Examples

The actual cost method requires detailed record-keeping but often yields higher deductions for dedicated home offices. Calculate your occupancy percentage by dividing office floor area by total home area, then apply this percentage to relevant expenses. Running expenses use time-based apportionment instead.

Consider a taxpayer with a 20 square meter office in a 200 square meter home, working from home 40 hours weekly. Their occupancy percentage equals 10% (20÷200), while their time-based percentage for a standard work week equals approximately 24% (40÷168 hours). Consequently, they claim 10% of mortgage interest, rates, and insurance, plus 24% of electricity, gas, and internet costs.

Expense Type	Annual Cost	Apportionment	Deduction
Mortgage Interest	$15,000	10% (occupancy)	$1,500
Council Rates	$2,400	10% (occupancy)	$240
Electricity	$1,800	24% (time-based)	$432
Internet	$960	24% (time-based)	$230
Computer Depreciation	$3,000	100% (work use)	$1,000

ATO Work From Home Calculator Usage

The ATO’s official calculator streamlines home office deduction calculations by guiding users through both methods systematically. Input your work hours, home expenses, and office setup details to generate accurate deduction estimates. Moreover, the calculator automatically applies current rates and depreciation schedules, reducing calculation errors.

Users begin by selecting their calculation method, then enter relevant expense data and work patterns. The calculator computes occupancy percentages, applies appropriate rates, and generates a comprehensive deduction summary. Furthermore, it provides record-keeping guidance to support your claims during potential ATO reviews.

Common Scenario Comparisons

Part-time workers often benefit more from the fixed rate method due to lower total hours and simpler record-keeping requirements. A part-time employee working 20 hours weekly from home claims approximately $694 annually (1,040 hours × $0.67), plus equipment depreciation where applicable.

Occasional remote workers typically find the fixed rate method most practical for sporadic home office usage. Someone working from home one day weekly claims roughly $139 annually (208 hours × $0.67) without extensive documentation requirements. However, full-time remote workers with dedicated offices usually achieve higher deductions through the actual cost method.

Maximum Deduction Limits and Thresholds

The ATO doesn’t impose specific dollar limits on home office deductions, but your claims must be reasonable and substantiated with appropriate records. However, disproportionately large deductions relative to your income may trigger ATO scrutiny and potential audit activity.

Additionally, the $300 substantiation threshold applies to total work-related expenses, not specifically home office costs. Claims exceeding this amount require detailed records including receipts, diary entries, and usage calculations. Therefore, maintaining comprehensive documentation protects your deductions regardless of the calculation method chosen.

The average Australian home office deduction ranges from $500-$2,500 annually, depending on work patterns and calculation methods used.

Eligibility and Compliance Requirements

Australian taxpayers must meet specific criteria to claim home office deductions under current ATO guidelines. The fundamental requirement involves performing income-producing work activities from your residence, whether as an employee, contractor, or business owner. Furthermore, you cannot claim deductions for time spent on personal activities, study, or non-work related tasks.

Who Can Claim Home Office Deductions

Employees working from home qualify for deductions when their employer requires or permits remote work arrangements. This includes full-time remote workers, hybrid employees, and those occasionally working from home due to business needs. Additionally, contractors and freelancers performing services from their residence can claim legitimate home office expenses.

Self-employed individuals and business owners operating from home premises automatically qualify for home office deductions. However, the ATO scrutinizes claims where personal and business use overlap significantly. Consequently, maintaining clear boundaries between work and personal activities strengthens your deduction eligibility.

Importantly, you cannot claim home office deductions if your employer provides a fully equipped office that you choose not to use. Similarly, students studying from home or individuals performing volunteer work don’t qualify for these tax benefits.

Dedicated Workspace vs Shared Space Requirements

The ATO distinguishes between dedicated home offices and shared spaces when assessing deduction eligibility. A dedicated office refers to a room used exclusively for work purposes, while shared spaces serve multiple functions throughout the day.

Dedicated workspaces allow you to claim a higher percentage of running costs including rent, mortgage interest, and utilities. Specifically, you can apportion these expenses based on the floor area your office occupies relative to your total home size. For instance, a 20-square-meter office in a 200-square-meter home qualifies for 10% of relevant expenses.

Shared spaces require more careful calculation and documentation. You can only claim expenses for the time you actively use the space for work purposes. Therefore, using your dining table for work 6 hours daily allows claims for 25% of that day’s running costs (6 hours ÷ 24 hours).

Record Keeping and Substantiation Obligations

Comprehensive record-keeping forms the foundation of successful home office deduction claims. The ATO requires taxpayers to maintain detailed records for five years from the date of lodging their tax return. Moreover, these records must demonstrate the direct connection between claimed expenses and income-producing activities.

Essential records include work diaries showing dates, times, and duration of home office use. Additionally, you must retain receipts for all claimed expenses, utility bills, and evidence of work-related necessity. Phone records, internet bills, and equipment purchase receipts provide crucial substantiation for technology-related claims.

Digital record-keeping systems offer convenient solutions for tracking home office usage patterns. Many taxpayers use smartphone apps or spreadsheets to log daily work hours and calculate expense apportionments automatically. However, ensure your chosen system captures all required information accurately and consistently.

Documentation Needed for ATO Compliance

• Time records: Daily logs showing work hours, dates, and activities performed from home
• Expense receipts: All bills for utilities, internet, phone, equipment, and office supplies
• Floor plans: Measurements showing dedicated office space relative to total home area
• Employment documentation: Contracts or letters confirming work-from-home arrangements
• Equipment records: Purchase receipts, depreciation schedules, and usage percentages

Bank statements and credit card records provide additional verification for claimed expenses. Furthermore, photographs of your home office setup can support dedicated workspace claims during potential ATO reviews. Insurance policies and lease agreements may also substantiate occupancy costs where applicable.

Professional taxpayers often benefit from invoice management solutions that integrate expense tracking with tax reporting requirements. These systems automatically categorize expenses and generate compliant documentation for ATO submissions.

Common Mistakes and How to Avoid Them

The most frequent error involves overclaiming expenses without proper substantiation or apportionment. Many taxpayers incorrectly claim 100% of utility bills when their home office represents only a small percentage of total floor space. Consequently, the ATO may disallow entire claims and impose penalties for negligent tax positions.

Another common mistake involves claiming personal expenses as work-related deductions. For example, claiming your entire internet bill when family members use the same connection for entertainment purposes. Instead, calculate the business percentage based on actual work usage patterns and data consumption.

Inadequate record-keeping represents the primary cause of rejected home office deduction claims. Taxpayers often fail to maintain contemporaneous records, instead attempting to reconstruct expenses months later during tax preparation. This approach rarely satisfies ATO substantiation requirements and may trigger audit activity.

Finally, many taxpayers mix calculation methods inappropriately or switch between methods without proper justification. Choose either the fixed rate method or actual cost method consistently throughout the financial year. Switching methods requires clear documentation explaining the change and ensuring compliance with ATO guidelines.

2026 Updates and Recent Changes

The Australian Taxation Office has maintained the $0.67 per hour home office rate for the 2025-26 financial year, continuing the fixed rate method established during the COVID-19 pandemic. However, several important updates have emerged that affect how taxpayers calculate and claim home office deductions moving forward.

Key Changes from 2025 to 2026

While the hourly rate remains unchanged, the ATO has tightened documentation requirements for home office claims. Previously, many taxpayers relied on simplified record-keeping during emergency COVID-19 provisions. Now, the ATO requires detailed time logs and clearer evidence of work-related activities performed at home.

Additionally, the ATO has clarified that the fixed rate method covers running expenses only. Consequently, taxpayers cannot claim separate deductions for electricity, gas, or phone bills when using the $0.67 hourly rate. This change prevents double-dipping that occurred in previous years.

Impact of Post-COVID Work Arrangements

Hybrid work models have fundamentally changed how the ATO assesses home office deductions. Furthermore, many employees now split their time between office locations and home workspaces, creating complex apportionment scenarios. The ATO recognizes that flexible work arrangements are permanent features of modern employment rather than temporary pandemic responses.

Employers increasingly provide home office allowances or reimburse specific expenses directly. Therefore, employees must carefully coordinate their tax deductions with employer-provided benefits to avoid claiming non-deductible amounts. The ATO has issued specific guidance on how these arrangements interact with personal tax obligations.

Work Arrangement	ATO Treatment	Record Requirements
Full-time remote	Standard deduction rules apply	Daily time logs required
Hybrid (2-3 days home)	Pro-rata calculation needed	Separate home/office records
Occasional home work	Limited deduction scope	Specific task documentation

ATO Guidance Updates and Clarifications

Recent ATO rulings have clarified several contentious areas around home office deductions. Specifically, the ATO now provides clearer guidance on what constitutes a dedicated home office space versus general living areas used occasionally for work purposes.

The ATO has also updated its position on technology expenses, recognizing that modern work requires sophisticated equipment and software subscriptions. However, personal use components must still be excluded from any deduction calculations. Moreover, the ATO emphasizes that expensive equipment purchases require careful depreciation calculations rather than immediate write-offs.

The ATO’s updated guidance states that taxpayers must demonstrate a clear nexus between home office expenses and income-earning activities, with contemporaneous records supporting all claims.

Future Outlook for Home Office Deductions

Looking ahead, the ATO signals continued scrutiny of home office claims as remote work becomes normalized rather than exceptional. Consequently, taxpayers should expect more detailed audit activities and stricter enforcement of substantiation requirements. The $0.67 hourly rate may face review if economic conditions or work patterns change significantly.

Technology integration will likely shape future home office deduction processes. The ATO is exploring digital solutions that automatically track work-from-home hours and expenses, potentially simplifying compliance while improving accuracy. These developments could revolutionize how taxpayers calculate and claim home office deductions in coming years.

Furthermore, legislative changes may address the growing complexity of hybrid work arrangements and employer-provided benefits. The government recognizes that current tax laws struggle to accommodate modern workplace flexibility, suggesting potential reforms to simplify home office deduction calculations while maintaining appropriate oversight.

Frequently Asked Questions

What is the hourly rate for home office deductions in 2026?

The ATO home office rate for 2026 is 67 cents per hour for the fixed rate method. This rate covers running expenses including electricity, gas, phone costs, internet expenses, computer consumables, stationery, and equipment depreciation for home office items.

How do I calculate the cost of a home office using the actual cost method?

To calculate actual home office costs, you need to determine the work-related percentage of your expenses based on floor area used and time spent working. This includes running expenses (electricity, gas, internet), occupancy costs (rent, mortgage interest, rates), and equipment depreciation calculated separately for each item.

Which method gives higher deductions – fixed rate or actual cost?

The actual cost method often provides higher deductions for taxpayers with substantial home office expenses, dedicated work spaces, or expensive equipment. However, the fixed rate method at 67 cents per hour may be more beneficial for casual home workers with minimal setup costs.

Can I claim occupancy costs like rent or mortgage interest?

Occupancy costs including rent, mortgage interest, council rates, and house insurance can only be claimed using the actual cost method. These expenses are not covered by the 67 cents per hour fixed rate and require detailed calculations based on floor area and work time percentages.

What records do I need to keep for home office deductions?

Record-keeping requirements depend on your chosen method:

• Fixed rate method: Time records showing hours worked from home
• Actual cost method: Receipts for all expenses, floor area measurements, work time logs, and evidence of work-related usage percentages

Who is eligible to claim home office deductions?

You’re eligible if you work from home for income-producing activities, have a dedicated work space or area, and can demonstrate that working from home is necessary for your employment or business activities. Casual or occasional use may not qualify for deductions.

Can I use both methods in the same tax year?

No, you must choose one method for the entire tax year. You cannot switch between the fixed rate method and actual cost method for different periods within the same financial year.

What expenses are NOT covered by the 67 cents per hour rate?

The fixed rate doesn’t cover:

• Occupancy costs (rent, mortgage interest, rates)
• Equipment purchases over $300 requiring separate depreciation
• Specific work-related phone calls or internet plans exclusively for work
• Capital improvements to your home office

How has the ATO guidance changed for 2026?

Post-COVID changes include stricter documentation requirements and refined eligibility criteria. The ATO now requires more detailed evidence of work-from-home necessity and has clarified what constitutes legitimate home office use versus personal convenience.

Can I claim home office expenses if I only work from home occasionally?

Occasional home workers can claim deductions, but must demonstrate that working from home is necessary for income-producing activities. The frequency and duration of home office use affects both eligibility and the total deduction amount you can claim.

What if my employer provides equipment – can I still claim deductions?

You can still claim running expenses and occupancy costs even if your employer provides equipment. However, you cannot claim depreciation or purchase costs for employer-provided items. Focus on utilities, internet, and space-related expenses you personally incur.

Is there a home office rate calculator available?

The ATO provides online calculators and tools to help determine your home office deductions. These calculators can help you compare the fixed rate method versus actual cost method to determine which approach provides better tax benefits for your situation.

What happens if I get audited for home office claims?

During an audit, you must provide evidence supporting your claims including time records, expense receipts, floor area measurements, and proof that working from home was necessary. Accurate record-keeping from the start ensures you can substantiate your deductions if questioned by the ATO.