70c per work hour Record actual hours
Working From Home Deductions
The fixed rate method gives you 70 cents for every hour you actually work from home, and it covers your energy, phone and internet, and stationery. What it does not cover is your furniture and equipment - those are claimed separately.
The fixed rate
| Income year | Fixed rate |
|---|---|
| 2024-25 and 2025-26 | 70c per work hour |
| 2022-23 and 2023-24 | 67c per work hour |
We have not listed a 2026-27 rate, because the ATO has not published one. Its fixed rate page (last updated 8 June 2026) lists rates for 2022-23 through 2025-26 only. When the ATO updates it, this page needs updating too.
What the rate covers, and what it does not
| Covered by the 70c rate | Claim separately |
|---|---|
| Electricity and gas for heating, cooling and lighting | Furniture - desks, chairs |
| Phone and internet (work portion) | Equipment - monitors, keyboards, computers |
| Stationery and computer consumables | Anything costing more than $300 (see the $300 rule) |
The split matters: if you claim the fixed rate and also claim your electricity again as an occupancy expense, you have double-dipped. The rate is designed to be the whole of the running-cost claim.
The record-keeping rule that costs people their claim
You must keep a record of the actual hours you worked from home, made at the time you worked them. Estimates are not accepted - and the ATO gives a worked example of exactly this going wrong: a taxpayer who estimated her hours for part of the year could not claim them at all, and only the months she had contemporaneous records for counted.
A spreadsheet, an email calendar or a timesheet all work. What does not work is reconstructing the hours at tax time from memory or from your working pattern.
Frequently asked questions
How much is the working from home rate?
70 cents per work hour for 2024-25 and 2025-26, up from 67 cents for 2022-23 and 2023-24. The ATO had not published a 2026-27 rate when we checked.
How do I work out the deduction?
Multiply the hours you actually worked from home by the rate. The ATO's own example: 843 hours × 70c = $590.
Do I need a dedicated home office?
No - the fixed rate method does not require a separate room. That is one of the reasons it replaced the old shortcut method, which had different restrictions.
Can I claim my desk and chair with it?
Not through the rate. Furniture and equipment are claimed separately - a single item costing $300 or less and used mainly for work can be claimed in full that year, otherwise over its effective life. Watch the set rule: the $300 test applies to a set of items together.
Can I estimate my hours?
No. The ATO specifically rejects estimates - you need a record of the actual hours kept as you work them. Hours worked from home that you estimated rather than recorded cannot be claimed.
From the Australian Taxation Office, checked 12 October 2026. General information only - not tax advice.