How much can I claim for working from home in Australia?

Under the ATO fixed rate method (from 2022–23), you can claim 70 cents per hour worked from home. For example, working 30 hours per week for 48 weeks gives a deduction of $1,008 — plus depreciation on any work equipment you purchased. The tax saving depends on your marginal rate (e.g. $348 saving at 34.5%).

Do I need a dedicated home office to claim WFH expenses?

No — not under the fixed rate method. You simply need to be performing work duties from home. However, occupancy expenses (rent, mortgage interest, insurance on the home) are only deductible if you have a dedicated space used exclusively for work.

What records do I need for the fixed rate method?

You must keep a record of your WFH hours for the full income year — diary entries, timesheets, calendar notes or employer records all work. You also need evidence of one bill from each expense type covered (e.g. one electricity bill, one internet bill).

Can I claim my internet and phone under the fixed rate method?

Under the fixed rate method (70c/hour), your internet and phone costs are already included in that rate — you cannot claim them separately as well. If you want to claim actual internet/phone costs, you must use the actual cost method instead.

Can I claim a new desk or chair I bought for working from home?

Yes. Assets like a desk, chair, monitor or laptop used for work can be claimed as depreciation under either method. Items costing $300 or less can be immediately deducted. Items over $300 are depreciated over their effective life (e.g. 5 years for a desk at 20% per year).

Work From Home Tax Deduction Calculator Australia

Compare the ATO fixed rate method (70c/hour) vs actual cost method to find your maximum work-from-home tax deduction. Uses 2025–26 ATO rates.

Work Pattern

Hours worked from home per week

Actual work hours, not just time at home

hrs

Weeks worked from home

Total: 1,440 hrs/yr

wks

Your Tax Rate

Marginal tax rate (incl. 2% Medicare levy)

Select the bracket that matches your total income

Actual Annual Costs (optional — for comparison)

Enter only the work-related portion of each expense (e.g. if 40% of your electricity use is work-related, enter 40% of the annual bill).

Electricity & gas (work portion)

Heating, cooling, lighting

Phone (work portion)

Internet (work portion)

Office supplies & stationery

Ink, paper, small tools

Depreciation (work-use assets)

Computer, monitor, desk, chair — claimable under both methods

Fixed Rate Method is Better for You

Max deduction

$1,008

Tax saving

$348

Total WFH hours

1,440 hrs

Saving per week

$7/wk

Method Comparison

Fixed Rate Method (70c/hour)

Total WFH hours1,440 hrs

Fixed rate deduction (1440 × $0.7)$1,008

Total deduction$1,008

Tax saving at 34.5%$348

Enter your actual annual costs above to compare methods.

What's covered by the 70c rate?

The fixed rate covers electricity, gas, internet, phone and office stationery. It does not cover the depreciation of assets (computer, desk, chair) — those are claimed separately under either method. You must keep a record of your WFH hours (diary, timesheet, roster).

How to Use This Calculator

1Enter the hours you actually worked from home per week (not just time at home)
2Enter the weeks you worked from home — typically 48 if you took 4 weeks leave
3Select your marginal tax rate from the dropdown
4Optionally enter your actual annual WFH costs to compare with the fixed rate method
5The calculator shows which method gives you the bigger deduction and tax saving

What Is the Work From Home Tax Deduction?

If you work from home, the ATO allows you to claim deductions for the running costs of your home office. From the 2022–23 income year, the revised fixed rate method allows you to claim 70 cents per hour worked from home, covering electricity, gas, internet, phone and stationery — no need to calculate actual expenses or have a dedicated home office.

Alternatively, under the actual cost method, you calculate and claim the real work-related portion of each expense separately. This requires more record-keeping but can produce a larger deduction if your actual costs are high.

Depreciation of assets (computer, monitor, desk, chair) is claimable separately under both methods and is not covered by the 70c fixed rate.

Key Things to Know

Fixed rate (70c/hour): Covers electricity, gas, internet, phone and stationery all-in-one. You must keep records of your WFH hours — a diary, timesheet or calendar note is sufficient. No separate expense receipts needed (except for depreciation).
Actual cost method: Claim the actual work portion of each expense separately. Requires receipts and evidence of the work-related percentage. Better if your real costs exceed what the 70c rate would cover.
Depreciation of assets: Your computer, desk, chair and other work equipment can be depreciated regardless of which method you use. Assets costing $300 or less can be immediately deducted; higher-value items are depreciated over their effective life.
No dedicated office required: Under the fixed rate method you do not need a dedicated home office room. You just need to be working from home — not on personal activities.
Record keeping: You must keep a record of your WFH hours for the full income year (from 1 July). The ATO no longer accepts a 4-week representative diary for the fixed rate method — it must cover the whole year.

Tips to Maximise Your Deduction

•Keep a running log of your WFH hours in your calendar or a simple spreadsheet — this is compulsory for the fixed rate method
•Claim depreciation on your computer, monitor, desk, standing desk, chair and any other equipment bought for work
•Items costing $300 or less can be fully deducted in the year of purchase rather than depreciated
•If your internet and electricity bills are high and you work from home full-time, compare the actual cost method — it may be worth the extra record-keeping
•The deduction reduces your taxable income — claim it on your tax return at Item D5 (Other work-related expenses)
•If your employer pays for your home office setup or internet, you cannot also claim those as deductions

Frequently Asked Questions

Official Sources

Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.

Rates and thresholds last updated for the 2024–25 financial year.

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