What Can I Claim Working From Home?

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If you work from home, even part of the time, you can generally claim a deduction for the extra running costs it creates — electricity, internet, phone, and more. The ATO gives you two ways to calculate this, and picking the right one can make a real difference to your refund.

The two methods

You must choose one method for the full financial year — you can't mix and match between the two.

1. Fixed rate method (the simple option)

For the 2024-25 and 2025-26 income years, the rate is 70 cents per hour you work from home. This single rate covers:

• Electricity and gas
• Internet and data
• Mobile and home phone use
• Stationery and computer consumables

You can't claim any of these separately if you use this method — they're already bundled into the 70c rate. What you can still claim on top is depreciation on equipment like your laptop, monitor, desk, or office chair, since these aren't covered by the hourly rate.

2. Actual cost method

This lets you claim the real, itemised cost of your home office running expenses — but it demands far more detailed records: receipts, a diary of hours worked, and a reasonable basis for splitting personal vs work-related use of things like your internet plan. It can produce a bigger deduction if you work from home heavily (4-5 days a week), but it's significantly more admin.

Estimate your deduction

What you need to keep as records

The ATO no longer accepts estimates or a "representative 4-week diary" scaled up to the full year. You need a genuine record of your actual hours worked from home across the entire year — a timesheet, diary, roster, or spreadsheet kept as you go.

What you can't claim

• Occupancy expenses like rent or mortgage interest — these are only claimable in rare cases where your home is your principal place of business, and doing so can create capital gains tax implications when you sell.
• Items already covered by the fixed rate if you're using that method (you can't double-dip).
• Time spent on minor tasks like briefly checking email outside work hours — the ATO expects genuine, substantive work.

Depreciating assets — claimed separately either way

Regardless of which method you use, you can generally claim depreciation on work-related equipment such as your laptop, monitor, desk, and chair. If an item costs $300 or less and is used mainly for work, you can claim the full cost immediately in the year you bought it rather than depreciating it over time.

Related guides

This is an estimated one. Consult a tax professional for your specific situation.