Work from home employees are taking on more work-related expenses, and there's growing resentment around it

A new survey has found more work from home employees feel some of their expenses should be incurred by their employer.  (Flickr: teegardin)

A growing number of Australians working from home are feeling the sting of covering expenses they feel normally would be covered by their employer.

A survey conducted by research agency McCrindle, released on Monday, found 53 per cent of Australian workers felt when they work from home, they run up expenses that would have been otherwise covered by their employer if they were working from their workplace.

These expenses included items such as tea and coffee, electricity, print and copy and other office consumables.

About a third of the 2000 workers surveyed agreed they were facing additional costs including home office equipment (37 per cent), purchasing or upgrading technology devices (35 per cent) and higher internet or data costs (34 per cent).

Principal social researcher Mark McCrindle said work expense resentment was becoming a real phenomenon for many Australian workers.

“This resentment is embedded in the fact that workers are paying for costs and other work-related expenses that would have otherwise been covered by their employer,” he said.

“They may be too small, or hard to itemise to include on a tax return, and too menial to ask their employer to pay for them, so the costs are being footed by the employee.”

Of course some of the added work from home expenses can be claimed back at tax time.

H&R Block Director of Tax Communications Mark Chapman said since COVID came along there has been a substantial permanent increase in the number of people working from home — meaning more people are claiming those deductions.

But not everything can be claimed.

“If (employees) are going to be working from home, they’re going to incur a lot of expenses for things they wouldn’t otherwise incur — the cost of electricity to heat the room or cool the room, the cost of electricity to power the computer, stationery, tea and coffee, toilet facilities,” he said.

“I mean literally lots and lots of expenses.

“Realistically employers should reimburse employees for those costs, but typically they don’t, therefore employees only way of getting relief for those items is through the tax system.”

Savings found working from home

Figures from McCrindle state about 55 per cent of the Australians either work partially from home or fully remotely, meaning they were incurring more of these expenses, compared to the remainder who are at the workplace all the time.

While at home ad hoc costs may be added to remote or work from home expenses, there are a number of savings to be had from this model of work.

According to research by McCrindle those savings can be found in transport, lunches, clothing and largely in childcare.

The research found workplace workers pay the highest costs of $10,289, compared to $6,164 for remote workers.

However, Mr Chapman said those savings can only be determined case by case.

“There are other benefits, apart from financial benefits,” he said.

“You get to spend more time at home, more time with your kids. You don’t have the additional stress of the commute like waiting for a train that might never turn up.”

Need for upgrades

Hybrid and work from home employees say they’re spending more on home office equipment, upgrading technology and higher internet and data costs.

“While some of these costs may be eligible for tax deductions, the fact that workers have incurred expenses related to home office equipment, technology upgrades, and increased internet costs highlights the financial implications for employees in maintaining an effective remote work environment,” Mr McCrindle said.

However, Mr Chapman said some of these items employees should reasonably expect their employer to cover.

“The standard of technology employees are actually using can have a great impact on the level of productivity,” he said.

“If they’re using a laptop which isn’t suitable for the job and they have to upgrade to comply with the employers requirements, then typically that’s something than an employer would pay

“And an office chair, that’s a health and safety requirement.

“But all of those other costs really are typically worn by the employee.”

Tax time 

Mr Chapman said even for small items, such as stationery, it was worth keeping receipts for everything when it comes to tax.

“Everything you purchase, whether its a few hundred for a mobile phone or a few thousand for a laptop or a few dollars or centres for a pen, pencil or ruler, you’re entitled to claim a deduction for those items,” he said.

“If they’re not reimbursed by the employer, you should do no matter how small or large the expense.”

Work from home tax deductions can be calculated using a fixed rate method or actual cost. Mr Chapman said the latter tended to provide a better bigger deduction, however the record keeping requirements were more cumbersome.

In terms of determining items which can and can not be claimed, the Australian Taxation Office provides a comprehensive guide.

And with Australian Institute of Health and Welfare data suggesting offices are unlikely to ever return to pre-pandemic levels, with 88 per cent of Australian workers preferring to work from home at least partially, keeping track of those expenses will become essential for keeping costs down.