What Can You Claim When Working From Home?
| Expense | Deductible? | Notes |
|---|---|---|
| Electricity / gas | Yes | Included in fixed rate, or apportioned under actual cost |
| Internet / phone | Yes | Work-related portion; included in fixed rate |
| Stationery | Yes | Included in fixed rate |
| Computer / laptop | Yes | Depreciation or immediate deduction rules apply |
| Office furniture | Potentially | Depreciation; claimed separately from fixed rate |
| Coffee / food | Generally no | Private living expenses |
| Rent / mortgage | Generally no (employees) | Occupancy expenses — different rules for businesses |
Work From Home Fixed Rate Method
For 2025–26, the rate is 70 cents per work hour. It covers:
- Electricity and gas
- Internet and data
- Mobile and home phone usage
- Stationery and computer consumables
You cannot claim these expenses separately if you use the fixed rate method. Depreciating assets (desk, chair, computer) are claimed in addition to the hourly rate.
| Income Year | Fixed Rate |
|---|---|
| 2025–26 (current) | 70 cents per hour |
| 2024–25 | 70 cents per hour |
| 2023–24 | 67 cents per hour |
| 2022–23 | 67 cents per hour |
| 2021–22 | 52 cents per hour |
| 2020–21 | 52 cents per hour |
Actual Cost Method
Calculate the work-related portion of each expense individually. Requires detailed records and receipts. May produce a higher deduction if you work from home extensively with high running costs.
| Method | Advantage | Requirement |
|---|---|---|
| Fixed rate | Simpler calculation | Hour records + one bill per expense type |
| Actual cost | May reflect true costs | Detailed receipts and apportionment |
WFH Deduction Calculator
WFH Fixed Rate Calculator (Estimate)
Uses the ATO fixed rate of 70 cents per work hour for 2025–26. Depreciating assets (e.g. desk, chair) can be claimed separately.
| Fixed rate deduction (800 hrs × 70¢) | $560 |
| Estimated total WFH deduction | $560 |
Can You Claim Rent or Mortgage Interest?
Employees working from home generally cannot claim occupancy expenses (rent, mortgage interest, council rates, land tax). Home-based businesses and sole traders may have different deduction rules — see ATO business guidance.
What You Cannot Claim
- Private or domestic expenses
- Expenses reimbursed by your employer
- Double-claimed expenses (fixed rate + separate internet claim)
- Estimated hours without contemporaneous records
Employee vs Self-Employed
| Situation | Rules |
|---|---|
| Employee | Work-related deduction rules; fixed rate or actual cost |
| Sole trader / business | Business expense rules; may include occupancy costs |
| Employer-reimbursed | Cannot claim the same expense again |
Record Keeping
- Record of actual hours worked from home (timesheet, diary, roster)
- At least one bill per expense type covered by the fixed rate
- Receipts for depreciating assets and actual-cost claims
- Keep records for 5 years after lodgement (ATO requirement)
Worked Example — Fixed Rate
Alex worked 900 hours from home in 2025–26. Fixed rate deduction: 900 × $0.70 = $630. Plus separate depreciation on a $600 desk used 80% for work.
Related: PAYG withholding variation may help if WFH deductions affect your expected annual tax position.
Frequently Asked Questions
What can I claim working from home in Australia?
Employees may claim work-related WFH expenses using the fixed rate method (70 cents per hour for 2025–26) or the actual cost method. You must incur additional running expenses, keep hour records, and not claim reimbursed expenses.
What is the work from home tax deduction rate?
For the 2025–26 income year, the ATO fixed rate is 70 cents per work hour. For 2022–23 and 2023–24 it was 67 cents.
Can I claim internet working from home?
Under the fixed rate method, internet is included in the hourly rate — you cannot claim it separately. Under the actual cost method, you can claim the work-related portion with records.
Can I claim rent when working from home?
Employees generally cannot claim rent, mortgage interest, council rates or land tax when working from home. These occupancy expenses may be relevant for home-based businesses under different rules.
Can I claim a laptop for work?
Yes, if used for work. Low-cost items may be immediately deductible; others are depreciated. Private use must be apportioned. Under the fixed rate method, depreciating assets are claimed separately from the hourly rate.
What records do I need for working from home deductions?
You need a record of actual hours worked from home (timesheet, diary, roster) and at least one bill for each expense type covered by the fixed rate (e.g. electricity, internet).
What is the difference between the fixed-rate and actual-cost methods?
The fixed rate uses a cents-per-hour amount covering running expenses. The actual cost method calculates the work-related portion of each expense individually. You choose one method per year.
Is working from home tax deductible in Australia?
Yes, if you meet ATO eligibility requirements — you must work from home, incur additional running expenses, keep records, and not be reimbursed by your employer for the same expenses.
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Written by AussieSalary Experts
Editorial Team
Compiled by industry experts with the best knowledge in Australian taxation, superannuation, and public sector compensation.
Read our Editorial Policy →✓ Fact-Checked & Verified
This guide is verified directly against primary Australian legislative sources, including the Australian Taxation Office (ATO) rates, Fair Work Ombudsman awards, and federal agency EAs.
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