Two Methods
1. Fixed Rate Method — 67c per hour
Claim 67 cents for every hour you work from home. This covers electricity, internet, phone, stationery, and computer consumables. You can claim the decline in value of equipment (desk, chair, computer) separately on top.
You must keep: A record of hours worked from home — a timesheet, roster, diary, or time-tracking app. The ATO no longer accepts estimates.
2. Actual Cost Method
Calculate the actual work-related portion of each expense: electricity, internet, phone, office furniture depreciation, stationery, etc. This gives a higher deduction if you have a dedicated home office, but requires detailed records of every expense.
Quick Calculation
| WFH Days per Week | Hours/Year (approx) | Deduction at 67c/hr |
|---|---|---|
| 1 day | 400 hrs | $268 |
| 2 days | 800 hrs | $536 |
| 3 days | 1,200 hrs | $804 |
| 4 days | 1,600 hrs | $1,072 |
| 5 days | 2,000 hrs | $1,340 |
Based on 8-hour days, 50 working weeks per year.
What You Can Claim on Top of the Fixed Rate
The 67c rate doesn't cover everything. You can claim these separately: decline in value of office furniture and equipment (desk, chair, monitor — depreciated over their effective life), and repairs to dedicated office furniture.
Frequently Asked Questions
Can I claim without a dedicated home office?
Yes. You can claim the fixed rate method even if you work from the kitchen table. You just need to record your hours.
What records do I need?
A record of actual hours worked from home. A timesheet, roster, or diary entry for each day. The ATO specifically says estimates are not acceptable.
Can I claim my rent or mortgage?
Only if you have a dedicated home office that you use exclusively for work. Even then, the claim is typically very small — a percentage based on floor area. Most employees are better off with the 67c/hour method.