Work-from-home
deduction calculator

Compare the 70c fixed-rate method against the actual-cost method, and see which gives you the bigger working-from-home claim — and the tax you’d actually save.

Fixed rate 70c/hr · 2025–26 · verified against the ATO (PCG 2023/1)

Your details

Hours worked from home this year

Must be your actual recorded hours for the whole year — the ATO no longer accepts estimates. Use the helper below if you work a regular pattern.

Actual-cost method — your home running costs

Enter each annual bill and the work-related % you can justify (e.g. work hours ÷ total household hours of use). Leave blank to compare on the fixed rate alone.

Electricity & gas

Home internet

Phone (mobile / home)

Other running (stationery, consumables)

+ Add equipment decline in value (both methods)

Desks, chairs, monitors, laptops used for work. Decline in value is claimable on top of either method. Effective life varies (ATO determinations: a laptop ≈ 2 years, a monitor ≈ 4, a desk ≈ 20 — you can self-assess). Estimate only — confirm with your accountant.

Equipment cost ($)

Effective life (years)

Full years owned before this one

Method

Work-use % of this equipment

Estimate your tax saving

Your marginal tax rate Add 2% Medicare levy

Your comparison

Fixed rate · 70c/hr

Enter your details →

0 hrs × 70c$0

Actual cost

Where this goes on your tax return

Employee: it goes under work-related expenses → working from home, in the deductions section of your return.
Occupancy expenses (rent, mortgage interest, rates) generally can’t be claimed by employees — this calculator covers running costs only.
Whole dollars only: the ATO disregards the cents on the final figure.
Labels move: confirm the current label in myTax or with your agent rather than a fixed menu path.

Whichever method you choose, keep these

Fixed rate: a record of your actual hours worked from home for the whole year (a timesheet, diary, roster or app — not an estimate), plus at least one bill for each covered expense type you incurred (e.g. one electricity bill and one internet bill).
Actual cost: receipts/bills for every expense you claim, and a reasonable work-use basis for each shared cost (a representative diary or hours record). More work, but no bundling.
Both: receipts for any equipment you depreciate, and exclude private use. You can switch methods between years, but not double-claim the same cost.

↓ Save as PDF / print Read the full guide →Free hours diary template →Car deduction calculator →Sole trader tax calculator →

General information only, based on ATO rates and rules — not personal tax advice. The fixed rate is 70c per hour for 2025–26 and covers electricity, gas, phone, internet, stationery and computer consumables — you can’t claim those separately under that method. The equipment and tax-saving figures are estimates. You’re responsible for your own eligibility and records. Confirm at ato.gov.au or with a registered tax agent before lodging. Built and reviewed by a CPA-qualified accountant. Taxplain is independent and not affiliated with the ATO.

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