The answer at a glance
Current working rate
70c/hour
Latest ATO-published employee rate
Hours record
Full year
A four-week sample is not enough
Separate claims
Assets
Not phone, internet or stationery
For most employees, the working from home tax deduction Australia question has a practical answer: use the fixed-rate method if you have a complete annual record of your WFH hours and do not want to allocate each individual running cost. The latest ATO-published employee rate is 70 cents per hour. It bundles energy, phone and internet use, stationery and computer consumables. It does not let you claim those same costs again.
The actual-cost method can produce a better outcome where you have large, provable additional costs, but it needs a defensible work-use calculation for each expense. Pick the method that you can support with records, not the one that produces the largest rough estimate. The ATO's working-from-home guidance is the primary source for eligibility and evidence requirements.
Estimate how a supported WFH claim could affect your tax-time result.
Open the Tax Refund CalculatorFixed rate or actual costs: choose based on the evidence you have
| Question | Fixed rate | Actual cost |
|---|---|---|
| What is claimed? | A single rate for specified running costs | The attributable additional cost of each eligible expense |
| Hours evidence | Actual WFH hours for the full income year | Evidence supporting work-related use and calculations |
| Phone, internet, energy | Included in the rate | Claim only the work-related additional portion |
| Desk, monitor, laptop | May be claimed separately if eligible | May be claimed separately if eligible |
| Best fit | Reliable daily records and ordinary household costs | Unusually high additional costs with detailed bills and usage evidence |
There is no ATO preference for one method. The fixed rate is a calculation shortcut, not an automatic entitlement. The actual-cost approach is not a licence to divide every household bill by the number of rooms. In either case, exclude private use and any cost reimbursed or supplied by your employer.
The record-keeping change that catches people out
The revised fixed-rate method requires a record of actual hours worked at home for the entire income year. A calendar, timesheet, roster, diary or spreadsheet can work if it records the actual hours. Keep at least one record for each expense included in the rate that you incurred, such as an electricity bill and internet bill. A representative four-week diary can help support an actual-cost calculation, but it no longer proves annual fixed-rate hours.
A simple defensible routine
At the end of each home-working day, log the start and finish time. Store bills in the same folder. When equipment is partly private, note the work-use percentage and why it is reasonable. This turns an EOFY reconstruction into an audit trail.
What you can still claim separately
The hourly rate does not include eligible decline in value for a work-related desk, chair, monitor or computer, or eligible repairs and maintenance to those assets. An item costing $300 or less may generally be immediately deductible if it meets the ordinary work-related rules. More expensive assets are generally claimed over their effective life, reduced for any private use. Do not claim an employer-provided or reimbursed item.
Ordinary household coffee, children's education costs and the private share of mixed-use expenses are not work deductions. Employee claims for rent, mortgage interest and council rates are a high-risk area and are not a normal consequence of remote work.
Before you lodge
- Confirm the rate that applies to the income year you are lodging.
- Choose one method for the same running expenses.
- Remove employer reimbursements and private use.
- Keep the hours log, bills and asset calculations with your tax records.
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Frequently asked questions
What is the working from home fixed rate for my 2025-26 tax return?
70 cents per hour, the ATO's fixed rate for 2025-26, which is the return you lodge by 31 October 2026 (Monday 2 November this year, as the 31st is a Saturday). The ATO hadn't published a 2026-27 rate when we last checked, so confirm it before lodging next year's return. The rate covers energy, home and mobile internet and phone use, stationery and computer consumables.
Can I claim internet separately under the fixed-rate method?
No. Home and mobile internet and phone use are included in the hourly rate. A separate claim for one of those included costs would double count it. You can separately claim eligible work-related decline in value and repairs for assets that the rate does not cover.
Do I need a dedicated home office to use the fixed rate?
No. The ATO does not require a dedicated room for the fixed-rate method. You still need to be working from home to fulfil employment duties and need records of your actual hours and the included expenses you incurred.
Can I use a four-week diary for my WFH hours?
No. A representative four-week sample is not accepted as evidence of your annual hours under the revised fixed-rate method. Keep an actual record of every work-from-home hour across the income year, such as a timesheet, roster, diary or spreadsheet.
Can an employee claim rent, mortgage interest or council rates when working from home?
Usually no. Those are occupancy expenses, not ordinary employee running expenses. The ATO's rules are narrow and depend on the home genuinely being a place of business, not simply a place you sometimes work. Get tailored advice before claiming them because they can also affect the main-residence CGT exemption.
Why does my WFH deduction look lower than last year?
The fixed rate is not intended to reimburse every household cost. It only represents the eligible running costs included in the ATO rate, and you can claim only hours actually worked at home. If a prior claim used a four-week sample or separately added internet and phone costs, it may no longer be comparable under the current record rules.
Source: Australian Taxation Office, Working from home expenses. The 70c rate is the latest employee rate published by the ATO when this page was updated. This guide is general information, not personal tax advice.