What is the ATO's current working from home rate?

The current ATO fixed rate for working from home is 67 cents per hour, applicable from 1 July 2022 onwards. This covers electricity, gas, internet, phone usage, stationery, and computer consumables. You do not need a dedicated home office to use this method.

Do I need a dedicated home office to claim working from home deductions?

No. Under the revised fixed rate method (67c/hour), you do not need a dedicated home office. You just need to be genuinely working from home, not doing minor tasks like checking email.

What records do I need to claim working from home expenses?

Under the fixed rate method, you must keep a record of the total hours you worked from home for the entire income year — either a diary, timesheets, or similar document. You also need one representative bill for each expense type covered by the rate (e.g., one electricity bill, one phone bill).

Can I claim my rent or mortgage as a working from home deduction?

Generally, no. Occupancy costs such as rent, mortgage interest, and council rates can only be claimed if your home is your principal place of business — not simply because you work from home sometimes. Claiming occupancy costs also has capital gains tax implications when you sell.

What is not covered by the 67c fixed rate?

The 67c rate does not cover depreciation of home office furniture and equipment (e.g., desk, chair, monitor), or the work-related portion of your internet costs if you want to claim those separately. These must be claimed separately under the actual cost method.

Tax & Deductions

What can you claim working from home in Australia?

You can claim 67 cents per hour for every hour you work from home in Australia — no dedicated office required — covering most running costs in one calculation, as long as you keep a record of your hours.

If you work from home, the ATO currently allows you to claim 67 cents per hour for every hour you genuinely work from home — no dedicated office required. This rate covers most of your running costs in one calculation. Alternatively, you can claim actual expenses, but that requires more detailed records.

General information only. Figures are for 2025–26 unless noted. Not personal tax advice — speak to a registered tax agent for your situation.

What is the current ATO working from home method?

From 1 July 2024, the ATO replaced earlier COVID-era shortcuts with a revised fixed rate of 70 cents per hour. This applies whenever you work from home for genuine employment or business purposes — not just checking emails or taking the occasional call. See the ATO's working from home expenses guide for the full rules.

The rate covers:

Electricity and gas (for heating, cooling, lighting)
Internet (the work-related portion)
Mobile and home phone (the work-related portion)
Stationery and computer consumables (paper, printer ink, etc.)

Because these costs are bundled into the rate, you cannot separately claim them on top. If you want to claim internet or phone costs separately, you must use the actual cost method instead.

Do I need a dedicated home office?

No — under the revised fixed rate method, you do not need a room set aside solely for work. You just need to be genuinely working from home. The ATO removed the dedicated office requirement when it introduced the 67c rate in 2022.

What records do I need to keep?

Under the fixed rate method you must keep:

A record of the actual hours you worked from home for the entire income year — a timesheet, roster, diary, or similar document. An estimate of your hours is not acceptable.
At least one record for each expense type covered by the rate — e.g., one quarterly electricity bill and one stationery receipt — to show you actually incur these costs.

Without a full-year hours record, the ATO can disallow your claim.

Can I claim rent or mortgage interest?

Generally, no. Occupancy costs — rent, mortgage interest, council rates, land tax — can only be claimed if your home is your principal place of business. That means you run a business from home and don't have another fixed workplace.

Even if you qualify, claiming occupancy costs has a capital gains tax (CGT) consequence: the portion of your home used for business will no longer be fully exempt from CGT when you sell. Most employees working from home should not claim occupancy costs.

What about the actual cost method?

Instead of the 67c rate, you can claim your actual work-related expenses — but you need records for everything. Under this method you can separately claim the work-related portion of electricity, internet, phone, and depreciation. It can produce a larger deduction if your actual costs are high, but requires more effort and meticulous record-keeping.

Quick comparison

Fixed rate (67c/hour): Simple. One record of hours + one bill per expense type. No separate internet/phone claim.

Actual cost method: Larger potential deduction. Requires records for every expense, percentage calculations, and evidence of work-related use.

How much could I claim?

At 67c/hour, if you work from home 3 days a week (roughly 24 hours/fortnight, ~624 hours/year), your deduction would be approximately $418 before other separately claimable items like equipment depreciation.

If you work from home full-time (~1,750 hours/year), the deduction is approximately $1,172 — again, before equipment.

What about equipment I bought for working from home?

If you bought a laptop, monitor, desk, or chair specifically for work, you may be able to claim the work-related portion:

Items costing $300 or less with a work-related use of more than 50% can generally be claimed as an immediate deduction.
Items over $300 are depreciated over their effective life.
If an item has mixed personal and work use, you can only claim the work-related proportion.

Want to see what your deductions actually add up to?

Everyone's working-from-home setup is different — hours, equipment, costs. That's what we're building Zyloz for: helping you map your own financial picture clearly, and connecting you with a licensed tax professional when you need one.

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Disclaimer: This page contains general information only and does not constitute financial or tax advice. ATO rules and rates change — verify figures against current ATO guidance before relying on them. Consult a registered tax agent for advice specific to your circumstances.