Australian employees who work from home can claim 70 cents for every hour worked at home in 2024-25 and 2025-26 under the ATO's fixed rate method. The rate covers energy, internet, phone and stationery, so you can't claim those separately, but you can still claim desks, chairs and computers on top, and you need a record of every hour.
Australia has taken a different path from the UK here. While British employees lost their working from home tax relief, Australian employees can still claim, through a simple hourly rate. The catch is the record-keeping: the ATO wants evidence of the actual hours, not an estimate. Here's how it works.
Can you claim?
- You work from home to do your job, not just to check emails or take the odd call.
- You have extra running costs because you work from home.
- You keep records, including a record of the hours you work at home.
If your employer pays you a working from home allowance, the ATO says you must declare it as income. You can still claim the deduction if you meet the rules.
The fixed rate method
| Income year | Rate per hour worked from home |
|---|---|
| 2024-25 and 2025-26 | 70 cents |
| 2022-23 and 2023-24 | 67 cents |
| 2020-21 and 2021-22 | 52 cents |
Multiply the hours you worked from home by the rate for that year. A worked example: 800 hours at 70 cents is 560 dollars. That's my sum from the ATO rate.
What the 70 cents covers
| Covered by the rate | Claimed separately |
|---|---|
| Home and mobile internet or data | Desks, chairs and bookshelves |
| Electricity and gas for heating, cooling and lighting | Computers and laptops |
| Stationery and computer consumables, like ink and paper | Repairs to those items |
This is where people double-dip by mistake. If you use the fixed rate, you can't also claim your internet bill or electricity separately: they're already inside the 70 cents.
Equipment on top of the rate
Work-related equipment is claimed separately from the hourly rate. If an item cost 300 dollars or less and you use it mainly for work that isn't a business, you can claim the full cost in the year you buy it. More expensive items are claimed as their value declines over their effective life, and lower-cost items under 1,000 dollars can go in a low-value pool. If you also use the item privately, you can only claim the work share.
The hours record
The ATO needs a record of the total number of hours you worked from home across the year, such as a timesheet, roster or diary. A rough estimate of a typical week isn't enough. Start the record on 1 July and keep it going to 30 June, so it covers the whole income year.
A record that holds up
The simplest record is a running log, kept as you go: the date, the hours you worked at home and what you were doing. A calendar, timesheet or roster works too, as long as it covers the whole year. If your hours are the same every week, you still need something that shows it happened, rather than a note written at tax time saying "about two days a week". Treat a gap in your record as a gap in your claim.
Mixed weeks and hybrid work
Many people now work some days in the office and some at home. That's fine: you claim only the hours you worked at home. Count the hours, not the days, and don't include time when you were at home but not working, or only doing minimal tasks like checking emails. The rule is about working from home to do your job, not being available.
Older years
If you're amending or lodging an earlier year, use that year's rate: 67 cents for 2022-23 and 2023-24, and 52 cents for 2020-21 and 2021-22. The record-keeping rules for each year still apply, so only claim hours you can show.
Employees vs sole traders
The fixed rate method is for employees. If you're a sole trader or business owner and your home is your principal place of business, the ATO points you to its separate guidance on deductions for home-based business expenses, which works differently.
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Allowances and reimbursements
If your employer pays you a working from home allowance, the ATO says to include it as income in your tax return. That doesn't stop you claiming the deduction if you meet the rules, but it does mean the allowance and the deduction both appear on your return. Keep your payslips showing the allowance alongside your hours record.
How to claim
- Keep a daily record of hours worked from home.
- At tax time, multiply the hours by the rate for that income year.
- Add your separate claims for equipment, if any.
- Include any working from home allowance from your employer as income.
- Claim the deduction in your tax return and keep the records.
My verdict
For most Australian employees who work from home regularly, the 70 cents fixed rate is the easy option, with far less paperwork than adding up every bill, as long as you keep a real record of your hours. Claim equipment on top, and don't double-claim internet or power. For the gig side of earning from home, see Amazon KDP in Australia and time tracking tools that make the hours record painless.
For the rest of the series, see the Remote Jobs and Work From Home: 47 Guides to Real Jobs, Pay and Spotting Scams.
Frequently asked questions
How much can I claim for working from home in Australia?
70 cents per hour worked from home for 2024-25 and 2025-26 under the ATO fixed rate method.
What does the 70 cents per hour cover?
Internet and data, electricity and gas for heating, cooling and lighting, and stationery and computer consumables.
Can I claim my internet bill as well as the fixed rate?
No. Internet is already included in the fixed rate, so you can't claim it separately.
Do I need to record my hours?
Yes. The ATO needs a record of the total hours you worked from home during the year.
Can I claim a desk or laptop on top of the fixed rate?
Yes. Depreciating assets like desks, chairs and computers are claimed separately.
