Estimate eligible work-from-home running expenses and compare how your hours, equipment and other costs may contribute to a home office deduction.
Employees who work from home to perform their employment duties may be able to claim additional running expenses they actually incur. The ATO allows a fixed-rate method and an actual-cost method, with different record-keeping requirements for each approach.
The fixed rate for 2026–27 is 70 cents per hour worked from home and covers specified running costs including energy, phone, internet, stationery and computer consumables. Certain depreciating assets used for work can be calculated separately where the rules allow. From 2026–27, eligible Australian resident individuals with assessable labour income may also qualify for a standard work-related deduction of up to $1,000. Relevant work-related deductions reduce the remaining standard-deduction amount, so the home-office amount calculated here may not simply be added on top of the standard deduction.
Find out what the fixed rate covers, what can be claimed separately and which records matter.
No. You do not need a room used exclusively as a home office to use the fixed-rate method, but you must actually work from home to perform your employment duties and incur additional running expenses.
The fixed rate covers specified running expenses such as electricity and gas for working from home, phone and internet usage, stationery and computer consumables. You cannot claim those same covered costs again separately for the same period.
Potentially. The decline in value of eligible depreciating assets used for work may be claimed separately from the fixed rate, with the claim reduced for any private use. Some low-cost items may qualify for an immediate deduction subject to the relevant rules.
Yes, if you are eligible and have sufficient records. The actual-cost method requires you to work out the additional work-related portion of each relevant expense rather than applying a set hourly rate.
Keep a record of the actual hours worked from home for the income year and evidence of the expenses you incurred. The exact records needed depend on whether you use the fixed-rate or actual-cost method.
SMH Accountants & Advisors can help you separate eligible work expenses from private costs and prepare a supportable deduction.
