Insights · Tax · 31 October 2026

---

Working from home deductions: the 70 cents an hour fixed rate

If you or your team work from home, the ATO fixed rate method is the simplest way to claim running costs: 70 cents for every hour worked from home in 2024–25 and 2025–26.

What the 70c covers

• Electricity and gas for heating, cooling and lighting.
• Home and mobile internet and data.
• Mobile and home phone use.
• Stationery and computer consumables.

You cannot claim these separately as well. You can claim, on top, the work-related decline in value of equipment like computers, desks and chairs.

Records you must keep

• A record of actual hours worked from home for the whole year: timesheet, roster or diary. Estimates are not accepted.
• At least one bill for each type of expense covered.
• Keep records for five years.

Example

The ATO's example: 843 hours worked from home × 70c = $590.

Business owners

Sole traders can use the same method for home-based work. Company owners working from home should be paid or reimbursed properly through the business, and occupancy costs (rent, interest) raise CGT questions on the home. Get advice: tax returns, tax planning checklist.

Quick answers

What is the working from home fixed rate?

70 cents per hour for 2024–25 and 2025–26.

Can I estimate my hours?

No. You need a record of actual hours worked from home for the whole year.

Sources

• ATO: Fixed rate method

General information only. This article does not take into account your circumstances and is not tax, legal or financial advice. Rates and rules change; check the sources above and get advice for your business before acting.