Work From Home Deduction Calculator

Work out your Australian work-from-home tax deduction with the ATO fixed-rate method.

Hours worked from home this year	800 hours
Fixed rate per hour	$0.7
Actual running costs (if you kept records)	$0
Your marginal tax rate	30 %

Hours worked from home this year

hours

Fixed rate per hour

70 cents for 2024–25 and 2025–26; check the ATO for later years

Actual running costs (if you kept records)

Electricity, internet, phone, stationery: optional comparison

Your marginal tax rate

Fixed-rate deduction

$560.00

800 hours × $0.70. At a 30% marginal rate, the deduction saves about $168 in tax. Equipment such as a desk or laptop can be claimed separately (depreciated if over $300).

About the Work From Home Deduction Calculator

The ATO's fixed-rate method lets you claim 70 cents for every hour worked from home (2024–25 and 2025–26 rate). It covers electricity and gas, phone and internet, stationery and computer consumables; you can't claim those again separately, but you can still claim the decline in value of equipment like desks and computers. You must keep a record of the actual hours worked from home for the whole year (a timesheet, roster or diary) and one bill for each running expense. The alternative is the actual cost method, which needs detailed records.

The formula

Deduction = hours worked from home × 70c

Worked example

Example: Fixed-rate deduction = $677.60

Inputs: Hours worked from home this year: 880 hours; Fixed rate per hour: $0.77; Your marginal tax rate: 33%.
Formula: Deduction = hours worked from home × 70c
Result: Fixed-rate deduction = $677.60

Questions people ask

Do I need a dedicated office?

No, not for the fixed-rate method.

Is an estimate of hours OK?

No, the ATO requires a record of actual hours for the whole year.