Is There an ATO-Approved WFH Hours App?

Short answerNo. The ATO doesn’t approve, certify or endorse work-from-home hours apps. Its software approval process only covers software that connects to ATO systems. myDeductions is the ATO’s own free tool. What the ATO cares about is the record: your actual hours, for the whole year, kept at the time.

Does the ATO approve WFH hours apps?

No. The ATO doesn’t approve, certify, endorse or accredit apps for recording work-from-home hours, and no app can be “ATO approved” for that purpose.

The ATO does have one software approval process, the Digital Service Provider (DSP) Operational Security Framework. It applies to software that plays a functional role in sending tax, accounting, payroll, business registry or superannuation data to the ATO, such as payroll software that reports through Single Touch Payroll. Products that meet it are listed on the ATO’s product register.

A WFH hours app that keeps your records on your own devices and doesn’t send anything to the ATO is outside that framework. So it has nothing to be approved against. If an app claims to be “ATO approved” or “ATO certified” for WFH records, treat that as a reason to look more closely, not as a reason to trust it.

What does the ATO actually accept as a record of WFH hours?

The ATO accepts any record that shows the actual hours you worked from home for the whole income year, kept at the time. The form is up to you.

For the 70c fixed rate method, PCG 2023/1 (para 58) gives examples of acceptable hours records:

  • timesheets
  • rosters
  • logs of time spent accessing employer or business systems
  • logs from time-tracking apps
  • a diary kept for the whole year

Time-tracking app logs are on that list as a type of record. That’s a statement about the kind of evidence, not an approval of any particular app. A paper diary filled in each day is just as valid as an app, as long as it’s kept as you go.

The same paragraph rules some things out. The ATO won’t accept an estimate of your hours, and since 1 March 2023 it won’t accept a representative 4-week diary either. You also need at least one bill for each running expense the rate covers. The records guide covers this in detail.

What is myDeductions?

myDeductions is the ATO’s own free record-keeping tool, inside the ATO app. It’s the closest thing to an “official” WFH app, because the ATO makes it.

According to the ATO’s myDeductions page, you can:

  • record your working from home hours each day
  • store receipts and track other work expenses
  • email yourself or your tax agent a CSV file of your records
  • upload your records to prefill myTax at tax time

Records are stored on your device. You enter your hours yourself, so it relies on you remembering to log each day. The ATO also advises keeping your records on a single device for the whole year, because sets of records can’t be combined, and you can upload once per financial year.

It’s a sound choice if you’re happy to enter your hours by hand and you lodge with myTax. If you’d rather the hours were recorded for you, or you want a report with every session in it, a dedicated app may suit you better. We compare the two fairly on the myDeductions comparison page.

What should I look for in a WFH hours app?

Look for an app whose record would hold up if the ATO asked how and when it was made. Approval isn’t the test; the quality of the record is.

CheckWhy it mattersWhat good looks like
When entries are madeThe ATO wants records kept at the time, not reconstructed laterEntries are created or confirmed on the day, with a timestamp
Manual and late entriesYou will forget a day sometimes; the record should be honest about itEntries added after the fact are labelled as added later
Edit historyChanges made months later can look like estimatesThe app shows what was changed and when, or keeps the original
Whole-year coverageThe fixed rate needs the whole income year, not a sampleDay, week and year views, with gaps easy to spot
Office daysHours worked at the office don’t countYou can mark a day or session as not at home
ExportsYou or your tax agent need the record outside the appA PDF or CSV with dates, start and end times, and totals by tax year
RetentionYou must keep records for 5 years from when you lodgeData is kept until you delete it, and you can export it
PrivacyA work log can reveal a lot about youA clear privacy policy, minimal data, no tracking of what you do
BillsThe fixed rate needs one bill per covered running expenseA place to keep or check off each bill

When are entries timestamped?

This is the most important check. A record made on the day carries more weight than one typed in at the end of the year. Apps that record automatically, or that ask you to confirm each day as it ends, make that easier. If an app lets you enter a whole year in one sitting, the app itself won’t show that the entries were made late. Whether the record is genuine is still up to you.

Does it keep an edit history?

Some edits are normal: you forgot to stop a timer, or you took a long lunch. What matters is that you can show what you changed. An app that keeps the original entry, or labels edited and late entries, gives you a better answer if you’re ever asked.

Can you get your data out?

Check the export before you rely on the app. You want a file you can keep for 5 years, independent of the app, with each day’s hours, a total for the income year, and ideally the hours multiplied by the rate. A CSV is useful for your tax agent. A PDF is useful for your own files.

How long is the data kept, and where?

The ATO asks you to keep records for 5 years from the date you lodge your return. An app that deletes old data after a year, or one that stops working if a subscription lapses, leaves you exposed. Check what happens to your records if you stop paying, change phones or delete the app.

What does it collect about you?

You need a record of hours, not of what you were doing. Some time trackers record app names, websites or screenshots. That’s more than the fixed rate needs. Read the privacy policy, and check whether the app uses third-party analytics or needs an account.

Does using an app guarantee my claim will be accepted?

No. No app, paper diary or spreadsheet guarantees a deduction. The ATO looks at whether you were eligible, whether you worked the hours you claimed, and whether your records support them.

An app can make a good record easier to keep. It can’t make you eligible. You still need to be working from home to fulfil your employment duties, not just checking emails or taking the odd call, and to incur additional running expenses. And only the hours you actually worked at home count, not office days.

WFH Diary is one option built for the 70c fixed rate method. It records when your Mac is in use, at the time, and you confirm each day was at home. It isn’t affiliated with or endorsed by the ATO, and no WFH app is.

Is a spreadsheet or paper diary good enough?

Yes, if you fill it in as you go. The ATO accepts a diary for the whole year as a record of hours, and it doesn’t specify a format (PCG 2023/1, para 58).

The weakness of a spreadsheet or paper diary isn’t the format. It’s that it depends on you remembering every day, and it doesn’t show when each entry was made. If you go that way, write the date and your start and finish times each day, and don’t fill in gaps from memory weeks later. Our free WFH diary template gives you a layout to start with, and the spreadsheet comparison sets out the trade-offs.

Questions

Is there an ATO-approved app for working from home hours?

No. The ATO doesn’t approve or endorse record-keeping apps. Its software framework only covers software that sends data to the ATO. The ATO’s own free tool is myDeductions, in the ATO app. Any method works if it records your actual hours for the whole year, at the time.

Does the ATO accept records from time-tracking apps?

Yes, as a type of record. PCG 2023/1 lists logs from time-tracking apps alongside timesheets, rosters and diaries as acceptable evidence of hours worked from home. That isn’t an approval of any app. The record still needs to show actual hours, for the whole year, kept at the time.

Is myDeductions better than other WFH apps?

It depends on how you work. myDeductions is free, made by the ATO and stores records on your device, but you enter hours yourself. Other apps may record hours automatically or give fuller reports. Check any app against the same tests: timestamps, edit history, exports, retention and privacy.

What should I do if an app says it’s ATO approved?

Be cautious. The ATO doesn’t approve WFH record-keeping apps, so the claim is at best loose wording. Judge the app on its record instead: when entries are made, whether edits are visible, whether you can export your data, and how long it keeps it.

Sources

This is general information, not tax advice. Check your own situation with the ATO or a registered tax agent. WFH Diary is not affiliated with or endorsed by the Australian Taxation Office.