Bills to Keep for the Fixed Rate Method

Which bills do I need to keep for the fixed rate method?

You need at least one bill or document for each running expense you incur that the 70c rate covers: energy (electricity or gas), phone and internet. For stationery and computer consumables, you need a receipt.

That rule is in PCG 2023/1, the ATO’s guideline for the fixed rate method, at paras 56 and 60–62. It sits alongside the main record: your actual hours worked from home for the whole income year. The hours set the amount you claim. The bills show you actually incurred the additional running expenses, which is one of the three conditions for using the method.

“At least one” means one per type, not one per month. A single electricity bill, a single phone bill and a single internet bill from the income year, plus one stationery receipt, meets the requirement. Keeping more does no harm.

Do I need every bill for the year?

No. Under the fixed rate method, one bill per running expense type is enough (PCG 2023/1, paras 60–62). You don’t use the bills to work out your claim, so you don’t need to add up a year of statements.

That’s different from the actual cost method, where you work out the real additional cost of each expense. That method needs far more detail: the bills for the period, and a way to show how much of each one relates to work.

A sensible habit is to save one of each bill early in the year, then add the stationery receipt the first time you buy something for work. Then it’s done, and you’re not hunting through your inbox in June.

What should the bill show?

The bill should show the type of expense, the supplier, the date or billing period, and the amount. Choose one from the income year you’re claiming for, because the point is to show you incurred the expense in that year.

For a 2026–27 claim, that means a bill dated, or covering a period, between 1 July 2026 and 30 June 2027.

If you only have a monthly statement or an online account summary, rather than a formal tax invoice, keep that. The point is to show you paid for the service during the year.

What if the bill is in someone else’s name?

You can still use the fixed rate method if you share the cost. PCG 2023/1 says that where a bill is in the name of one member of the household but the cost is shared, each member who contributes to paying it is taken to have incurred it.

So if the electricity bill is in your partner’s name and you split it, you’ve both incurred the energy expense. Keep the bill, and keep something that shows you contribute, such as a bank transfer to the account holder, a joint account statement, or a written arrangement for splitting household costs.

If you don’t contribute to an expense at all, you haven’t incurred it. For example, if a family member pays the internet and you pay nothing towards it, you can’t count it as your expense. The ATO requires you to incur additional running expenses to use the method at all. If you’re in that position, read the ATO’s eligibility rules or ask a registered tax agent.

What about a phone or internet plan my employer pays for?

If your employer pays the bill directly, it isn’t your expense, so it isn’t your bill to keep for this purpose. If your employer reimburses you for running costs, that affects what you can claim. Check the ATO’s fixed rate method page on how reimbursements affect your claim, and see our guide to employer reimbursement.

A work phone that your employer supplies and pays for is the most common example. If you also pay for a personal mobile that you use for work, that personal bill is the one to keep.

What counts as stationery and computer consumables?

Stationery and computer consumables are the small items you use up in your work: printer paper, ink and toner cartridges, pens, notepads and similar items. Keep a receipt for at least one of them.

The fixed rate already covers these costs, so you can’t claim them separately on top (ATO). The receipt only shows you incurred them. Equipment that lasts, like a monitor, keyboard, chair or desk, isn’t a consumable. You claim its decline in value separately, and you keep the purchase receipt for that claim. Our guide to what the fixed rate covers draws the line in more detail.

A receipt from a supermarket or office supplies shop is fine, as long as it shows the item, date and amount. If the receipt is for a mixed shop, it helps to note which items were for work.

Can I keep digital copies of bills?

Yes. Most energy, phone and internet bills arrive as PDFs or emails, and you can keep them that way. The ATO’s requirement to keep records for 5 years applies however you keep them, and its own free myDeductions tool lets you store receipts in the ATO app.

Make sure each copy is clear and complete: the whole bill, legible, with the supplier, date and amount visible. A screenshot of an online account that shows only a balance is weaker than the bill itself.

Where you store them matters too. A folder in your email can disappear if you change providers or close an account. A dedicated folder on your computer or cloud storage, or inside a record-keeping app, is easier to keep for five years. WFH Diary has a bills to keep checklist for the four running-cost types, with room to attach the PDF or photo of each one.

How long should I keep the bills?

Keep them for 5 years from the date you lodge your tax return, the same as your hours record (ATO).

The clock starts when you lodge, not at the end of the income year. If you lodge late, you keep the records for longer. If you also claim depreciation on equipment, keep the purchase receipt for 5 years from your last claim for that item, which can be many years after you bought it.

Do I need bills if I take the $1,000 standard deduction?

No. From 2026–27, eligible workers can get a $1,000 standard deduction without receipts. But if you itemise more than $1,000 of work expenses, you need records for all of them, including your hours and these bills.

Saving four documents takes a few minutes, and it keeps the fixed rate open if your hours end up passing the break-even point. The standard deduction guide and the deduction calculator show where that point is for you.