Working from home deductions: the 70c fixed rate explained

If you work from home for your job, you may be able to claim some of your running costs. For the 2024–25 and 2025–26 income years, the ATO's fixed rate method lets you claim 70 cents for every hour you work from home.

What the 70c covers

• Electricity and gas for heating, cooling and lighting
• Home and mobile internet and data
• Home and mobile phone use
• Stationery and computer consumables, such as printer ink

You can't claim these items separately if you use the fixed rate.

What you can claim on top

• The decline in value of equipment such as a laptop, desk, chair or monitor, based on how much you use it for work
• Items that cost $300 or less can usually be claimed in full in the year you buy them
• Repairs and maintenance of that equipment

A quick example

Priya, an office worker, worked from home two days a week for 46 weeks, at 7.5 hours a day. That's 690 hours. Her fixed rate claim is 690 × $0.70 = $483, plus depreciation on the desk and monitor she bought for work.

The records you need

• A record of the actual hours you worked from home for the whole year, such as a timesheet, roster or diary. An estimate or a few sample weeks is not enough.
• At least one bill for each type of expense covered by the rate, such as an electricity bill and a phone bill.
• Receipts for equipment, and how much you use it for work.

Fixed rate or actual cost?

You can instead claim your actual costs, but that needs detailed records of how much of each bill relates to work. For most employees the fixed rate is simpler. If you have a dedicated home office, bring your bills and we'll check which method gives you the better result.

This article is general information only and does not take your personal circumstances into account. It is not financial or tax advice. Tax rules change, so please contact us before acting on it. Information current as at the date above.