For FY2025-26 the ATO's fixed rate for working from home is 70 cents per hour actually worked at home. That single rate covers electricity, gas, phone, internet and stationery, so none of those can be claimed again separately. You need a record of your actual hours, not an estimate.
What the 70c fixed rate covers
The fixed rate method rolls a set of running costs into one hourly figure. For FY2025-26 that rate is 70c per hour, unchanged from FY2024-25. It covers:
- electricity and gas for heating, cooling and lighting
- home and mobile phone usage
- internet
- stationery and computer consumables
The critical implication: because phone and internet are inside the rate, you cannot claim them again on top. Claiming the fixed rate plus a separate phone bill is one of the most common errors in this area.
Source: ATO, working from home expenses, fixed rate method. Checked 21 August 2026.
Which year this rate applies to
The 70c fixed rate on this page is the FY2025-26 rate, which is the year a return lodged now covers. The ATO has not yet published a fixed rate for FY2026-27. We have not guessed at one: when it is published, this page will be updated and the date on the sources page will change with it.
What you can still claim separately
The rate covers running costs, not assets. On top of the fixed rate you can still claim the decline in value of equipment used for work, such as a desk, an office chair, a monitor or a laptop, apportioned for private use. Items costing $300 or less that are used only for work can generally be claimed outright in the year you buy them. Repairs and maintenance to that equipment are also separate.
What it is worth, by hours worked
The claim itself is straightforward arithmetic, but what matters is the tax it saves, which depends on your marginal rate. The two salary columns are deliberately in different brackets, which is why the same deduction is worth more on the higher one. This table assumes 48 working weeks, allowing for annual leave and public holidays.
| Time at home | Hours a year | Deduction at 70c | Tax saved on $80,000 | Tax saved on $140,000 |
|---|---|---|---|---|
| 5 hours a week | 240 | $168 | $54 | $66 |
| 10 hours a week | 480 | $336 | $108 | $131 |
| 15 hours a week | 720 | $504 | $161 | $197 |
| 20 hours a week | 960 | $672 | $215 | $262 |
| 25 hours a week | 1,200 | $840 | $269 | $328 |
Two days a week at home is roughly 15 hours, which is a $504 deduction and about $161 of tax on an $80,000 salary. Worth claiming, and worth keeping the log for, but not the windfall people sometimes expect.
The records the ATO now expects
This is where the rules tightened, and where most claims fall over under review. You need:
- A record of the actual hours you worked from home for the whole year. A timesheet, roster, diary or calendar entries kept as you go. A four week sample multiplied out is no longer acceptable, and neither is an estimate written up in October.
- At least one bill or invoice for each of the categories the rate covers, to show you actually incurred those costs. You do not need every bill, but you need evidence the expense existed.
- Records for anything claimed separately, such as the receipt for a chair or monitor and a reasonable basis for its work-use percentage.
The ATO has been explicit that the hours record must be contemporaneous. If you have not kept one for the year just ended, the honest position is that you may not be able to substantiate a fixed rate claim, and the fix is to start a log now for the current year.
Fixed rate or actual cost: which is better?
The actual cost method lets you claim the real work-related portion of each expense rather than a flat rate. It can produce a larger deduction, particularly if you have a dedicated home office, run heating or cooling for long periods, or have high power costs. It also requires substantially more work: you need to determine the work-related proportion of each bill and hold records for all of it.
As a rule of thumb, the fixed rate wins on effort for most people working from home part of the week. Actual cost is worth modelling if you work from home most of the time and have a room used solely for work. Note that even under actual cost, occupancy costs like rent, mortgage interest and rates are generally not claimable by an employee, and claiming them can affect the capital gains tax exemption on your home.
Frequently Asked Questions
What is the working from home rate for 2025-26?
70 cents per hour under the fixed rate method, the same as 2024-25. It covers electricity, gas, phone, internet and stationery.
Can I claim my internet if I use the fixed rate?
No. Internet and phone are already inside the fixed rate, so claiming them separately on top double counts. If you want to claim them at their real work-related proportion, you have to use the actual cost method for everything instead.
Do I need to record my actual hours working from home?
Yes. The ATO requires a record of the actual hours worked from home across the whole year, kept as you go. A representative four week diary is no longer sufficient for the fixed rate method.
Can I claim a desk and chair as well as the hourly rate?
Yes. The fixed rate covers running costs, not equipment. You can claim the decline in value of a desk, chair, monitor or laptop, apportioned for private use, and items of $300 or less used only for work can generally be claimed in full in the year of purchase.
Can I claim rent or mortgage interest for working from home?
Generally not as an employee. Those are occupancy costs, and the ATO restricts them to taxpayers whose home is a genuine place of business. Claiming them can also expose part of your home to capital gains tax when you sell.
A note on what this is
This guide is general information built from the ATO's published material. It is not tax or financial advice, and it cannot take your circumstances into account. Clearway Apps is not a registered tax agent. Where a decision matters, check it against the ATO page linked in each section or talk to a registered tax agent.