About the Australia Work From Home Deduction Calculator
This work from home deduction calculator compares the two methods the ATO accepts for claiming the extra running costs of working at home: the fixed rate method, which gives 70 cents for every hour you work from home for 2024-25 and 2025-26 (the ATO has not yet published the 2026-27 rate, so 70 cents is assumed for that year), and the actual cost method, where you claim the work-related share of what you really spent. It shows both deductions, which one is larger and roughly how much tax it saves.
The fixed rate covers energy for heating, cooling and lighting, home and mobile internet and phone, and stationery and computer consumables, so you cannot claim those separately. You can still add the decline in value (depreciation) of equipment and furniture such as a desk, chair, monitor or laptop under either method. The actual cost method needs detailed records — bills, receipts and a diary or itemised accounts showing your work-use percentage — but often wins if you work long hours from home in a dedicated room or have high energy and phone costs.
Under both methods you need a record of the actual hours you worked from home for the whole year (timesheets, rosters or a diary), and you must incur the additional running expenses yourself. Occupancy costs such as rent, mortgage interest and rates are generally not deductible for employees. From 2026-27 the Government has also announced a $1,000 instant deduction for work-related expenses as an alternative to itemising.
With the default inputs, the best deduction is $1,498.00. Change any value above to recalculate instantly.
How to use the australia work from home deduction calculator
- 1Choose the income year and enter the total hours you worked from home.
- 2Enter your yearly energy, internet and phone bills with a fair work-use percentage for each.
- 3Add work stationery and the decline in value of equipment and furniture.
- 4Enter your marginal tax rate including the Medicare levy.
- 5Claim the larger result, keeping the records the chosen method requires.
Formula and method
The fixed rate method multiplies the actual hours you worked from home by the ATO rate for the year — 70 cents for 2024-25 and 2025-26 (assumed for 2026-27), 67 cents for 2022-23 and 2023-24 — and only the whole-dollar amount is claimed. That rate replaces separate claims for energy, internet, phone and stationery, but you may add the work-related decline in value of depreciating assets such as furniture and computers.
The actual cost method adds the work-related portion of each running expense: your energy, internet and phone bills multiplied by a fair work-use percentage, plus work stationery and the same decline in value of equipment. Whichever is larger is the better claim, provided you have the records each method requires. The tax saving is approximated as the deduction × your marginal rate including the 2% Medicare levy.
- hours
- Actual hours worked from home, from timesheets or a diary
- $0.70
- ATO fixed rate per work hour for 2024-25 and 2025-26 (assumed for 2026-27)
- work share
- Work-related percentage of each bill
Worked examples
Two days a week at home
736 hours × 70c = $515.20, so the fixed rate claim is $515 plus $300 of equipment = $815. Actual costs are $360 energy + $450 internet + $288 phone + $100 stationery + $300 equipment = $1,498, so the actual cost method wins and saves about $479 at 32%.
ATO example: Keisha, 843 hours
Keisha worked 843 hours from home in 2025-26. 843 × 70c = $590.10, and only whole dollars are claimed, so her deduction is $590.
Full-time at home with high bills
The fixed rate gives 1,500 × 70c = $1,050 plus $500 equipment = $1,550. Actual costs are $750 + $720 + $500 + $200 + $500 = $2,670, which is $1,120 more.
Frequently asked questions
What is the ATO work from home fixed rate?+
The ATO fixed rate is 70 cents per hour worked from home for 2024-25 and 2025-26. The ATO had not published a 2026-27 rate at the time of writing, so this calculator assumes 70 cents for 2026-27. It was 67 cents for 2022-23 and 2023-24 and 52 cents for the two years before that.
What does the 70c fixed rate cover?+
Energy for heating, cooling and lighting, home and mobile internet and data, mobile and home phone usage, and stationery and computer consumables such as printer ink. You cannot claim those separately if you use the fixed rate.
What records do I need for the fixed rate method?+
A record of the actual hours you worked from home for the whole year — timesheets, rosters, logs or a diary — plus at least one bill or receipt for each type of running expense the rate covers. An estimate or a four-week diary is no longer accepted.
Can I claim my desk, chair or laptop as well?+
Yes, under either method. Items costing $300 or less used mainly for work can be claimed in full in the year you buy them; dearer items are depreciated over their effective life, apportioned for private use.
Can I claim rent or mortgage interest when working from home?+
Generally no. Occupancy expenses such as rent, mortgage interest, rates and home insurance are only deductible in limited cases, for example when an area of the home is set aside exclusively as a place of business.
What is the $1,000 instant tax deduction?+
The Government announced a $1,000 instant deduction for work-related expenses from the 2026-27 income year that employees could claim without receipts instead of itemising. If your total work-related expenses exceed $1,000 you can still claim them the usual way.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.