Home Office Deduction Calculator
What you can claim for working from home: the 70c fixed rate, equipment and a business room.
Working from home 20 hours a week for 46 weeks, you can claim about $1,144, which saves about $366 in tax.
The ATO hasn't published the fixed rate for this year yet, so this uses the latest rate of 70c an hour.
The ATO's fixed rate method: 70c for every hour worked from home covers electricity, gas, phone, internet and stationery, so those aren't claimed separately. Depreciation of equipment is added on top. If a room is set aside only for your business, its share of rent or mortgage interest, rates and insurance (occupancy costs) can also be claimed. The tax saving uses your marginal rate, including the Medicare levy. Employees can use the same fixed rate, but can't claim occupancy costs.
Rates checked September 2026 against the ATO.
The 70c fixed rate
The ATO's fixed rate method lets you claim 70c for every hour you work from home. It covers electricity and gas, phone and internet, and stationery and computer consumables, so you can't claim those separately as well.
You need a record of the actual hours you worked from home for the whole year, such as a timesheet, roster or diary, plus a bill for each type of cost the rate covers.
What you can add on top
Running costs are covered by the fixed rate. You can also claim:
- Equipment: depreciation of a desk, chair, computer or other work equipment. Items costing $300 or less can be claimed in full straight away.
- Occupancy costs (sole traders only): if a room is set aside only for your business, such as a studio or workshop, you can claim its share of rent or mortgage interest, council rates and home insurance. A spare room you also use as a study doesn't count. On a home you own, this usually means paying some capital gains tax on that part when you sell, so get advice first.
Frequently asked questions
The ATO hasn't published a rate for 2026-27 yet. It was 70c an hour for 2024-25 and 2025-26, so the calculator uses 70c until a new rate is announced.
Yes, employees can use the same 70c fixed rate and claim equipment, but not occupancy costs such as rent or mortgage interest.
Yes. Keep a record of every hour you work from home across the whole year, not just a sample, and one bill for each expense the fixed rate covers.
The actual cost method: work out the real work share of each running expense. It takes more records but can give a bigger claim if your costs are high.