Working From Home Tax Deductions in Australia

For the 2024-25 and 2025-26 income years the fixed rate is 70 cents per hour worked from home. It covers electricity and gas, internet, phone, stationery and computer consumables - you cannot claim those separately on top. You can still separately claim depreciation of larger items like a desk or laptop. The rate for 2026-27 returns will be confirmed by the ATO.

Alternatively, claim the work-related share of your actual expenses - energy, internet, phone, cleaning, and depreciation - based on records and a reasonable apportionment (for example, floor area and hours). More work, sometimes a bigger claim.

For the fixed rate you need a record of all hours worked from home for the whole year (timesheets, rosters or a diary) - the ATO no longer accepts a representative four-week sample - plus one bill for each covered expense type. For actual costs, keep every bill and your apportionment working.

Rent, mortgage interest, rates and general household items are not deductible for employees working from home, and you cannot claim for things your employer reimbursed.