Working from home: fixed rate or actual cost?

Understand the records and expenses involved in the ATO fixed-rate and actual-cost methods.

For the 2024-25 and 2025-26 income years, the ATO fixed-rate method uses 70 cents for each eligible hour worked from home. The rate covers certain running expenses, including energy, internet and phone usage, and stationery and computer consumables.

You need records of the total hours worked from home and evidence of relevant expenses. The fixed rate does not cover the decline in value or repairs of office furniture and equipment; eligible work-related amounts may be claimed separately.

Under the actual-cost method, you calculate the work-related share of eligible expenses using records that support your calculation. This can take more work, but may produce a different deduction depending on your circumstances.

You cannot claim the same expense twice. Read the ATO's current guidance and compare the methods using records for the correct income year.