MoneyMilestones
Work-from-home deduction · ATO fixed rate

Your work-from-home tax saving

The ATO fixed-rate method lets you claim 70c for every hour you work from home. See your deduction and what it actually saves you in tax at your marginal rate.

1

Your hours

hrs
wks
2

Your saving

Tax you save (year)
$0
Total hours from home
Deduction (70c × hours)
Your marginal rate
Tax refund benefit

Common questions

How much can I claim for working from home?
Under the ATO fixed-rate method you claim 70c for each hour worked from home, covering energy, phone, internet and stationery. Multiply your hours by 70c for the deduction; the tax saving is that deduction at your marginal rate.
Does the deduction cover my desk and computer?
No — the 70c rate covers running costs only. You can claim depreciation of equipment like a desk, chair, monitor or computer separately, on top of the fixed rate.
Do I need to keep records?
Yes. The ATO requires a record of your actual hours worked from home for the whole year (a diary, timesheet or roster — estimates are not accepted) plus at least one bill for each expense the rate covers.
What about the new $1,000 instant deduction?
From 2026-27 employees can claim a flat $1,000 for work expenses with no receipts. If your work-from-home claim is under $1,000 and you have no other work expenses, the instant deduction is simpler and larger.