Complete guide to claiming work-from-home tax deductions in Australia for 2025-26. The revised fixed rate (67c/hr), what it covers, record-keeping requirements, and the actual cost method compared.
Since the end of the COVID-19 temporary shortcut method (which ended on 30 June 2022), the ATO has two approved methods for claiming work-from-home expenses:
Both methods require you to keep records. The days of claiming home office deductions from a rough estimate or a note in your diary are over. The ATO has significantly tightened record-keeping requirements since 2023.
See how work-related deductions reduce your taxable income and increase your tax refund.
Income Tax Calculator →The revised fixed rate method was introduced on 1 July 2022 (replacing the old 52 cents per hour method). Under this method, you claim 67 cents for every hour you work from home during the income year.
To use the revised fixed rate method, you must:
The revised fixed rate covers these expenses in full — you cannot claim them separately:
These additional expenses are not covered by the 67c rate and can be claimed separately:
The ATO is very specific about what records are acceptable for the 2024–25 income year:
| Record Type | What to Keep |
|---|---|
| Work hours log | A diary, timesheet, or roster showing every day you worked from home and the hours for each day — for the entire income year (1 July to 30 June) |
| Phone and internet | Evidence you have a phone and internet plan (e.g., a bill) — the rate covers your work portion so no need to calculate percentages |
| Equipment depreciation | Receipts for all equipment purchased for work use |
Under the actual cost method, you calculate the actual additional costs you incurred due to working from home and claim the work-related percentage of each expense.
For running expenses like electricity, you calculate the additional cost of having your home office equipment running during work hours. For shared expenses like your internet plan, you calculate what percentage of usage is work-related.
| Expense | Annual Cost | Work % | Deduction |
|---|---|---|---|
| Electricity (home office) | $1,800 | 20% | $360 |
| Internet (home broadband) | $1,200 | 40% | $480 |
| Mobile phone (work calls) | $1,080 | 30% | $324 |
| Stationery and supplies | $200 | 100% | $200 |
| Desk depreciation | $1,200 (cost) | 100% work | $240 (20%pa) |
| Monitor depreciation | $800 (cost) | 80% work | $128 (20%pa) |
| Total deduction | $1,732 |
The right choice depends on your individual circumstances. Here is a rough guide:
| Scenario | Better Method |
|---|---|
| You work from home 3+ days per week | Likely fixed rate — easier and often higher |
| You have a high internet bill you use mostly for work | Actual cost — you can claim a larger portion |
| You purchased expensive equipment recently | Actual cost — depreciation claims are separate |
| You want simplicity and minimal record keeping | Fixed rate (but still need a full-year hours log) |
| You work from home 1-2 days per week | Compare both — fixed rate may be lower |
The ATO has publicly flagged work-from-home deductions as a key compliance focus for the 2024–25 tax year. Common errors it is targeting include:
Enter your income, tax withheld, and work-from-home deductions to estimate your tax refund before you lodge.
Tax Return Estimator →