Quick answer — FY2025-26 WFH rate
The ATO fixed rate for working from home in FY2025-26 is 70 cents per hour. Two methods:
| Method | Rate | What it covers | When to use |
|---|---|---|---|
| Fixed rate (revised) | 70¢/hour | electricity, gas, internet, mobile + home phone, computer consumables, stationery — all bundled | Most employees. Simpler, no separate phone/internet claim |
| Actual cost | Apportioned actuals | Each cost calculated separately with work-use % | Heavy equipment depreciation users (e.g. ergonomic desk + monitor + chair) |
You cannot mix — pick one method per year.
Calculator (fixed rate)
```
hours per week × weeks per year × 0.70 = your WFH deduction
```
Common scenarios
| Hours/week | Weeks/year | Calculation | Deduction |
|---|---|---|---|
| 8 (1 day) | 48 | 8 × 48 × 0.70 | $268.80 |
| 16 (2 days) | 48 | 16 × 48 × 0.70 | $537.60 |
| 24 (3 days) | 48 | 24 × 48 × 0.70 | $806.40 |
| 38 (full-time WFH) | 48 | 38 × 48 × 0.70 | $1,276.80 |
48 weeks accounts for 4 weeks annual leave + public holidays you wouldn't be working. Adjust if you took more/less.
What documentation you need (fixed rate)
The ATO requires contemporaneous record of actual hours worked from home. You can't reverse-engineer it at lodgement time. Acceptable:
- Diary entries / timesheets / Outlook calendar
- Roster from employer showing WFH days
- Apps that auto-log working hours (Toggl, Clockify, etc.)
Not acceptable: "I usually work from home 3 days a week" estimates with no record.
What the fixed rate already covers (you can't double-claim)
Once you use 70¢/hour:
- ❌ No separate electricity claim
- ❌ No separate gas heating/cooling claim
- ❌ No separate mobile phone or home internet claim (the bundle includes them)
- ❌ No separate stationery / printer ink / computer consumables claim
You can still claim separately:
- ✅ Computer / monitor / chair / desk depreciation (items >$300, claimed over effective life)
- ✅ Repairs and maintenance to depreciating assets
- ✅ Cleaning costs for dedicated home office area (if you have one)
- ✅ Occupancy costs (rent, mortgage interest, rates) — only if you run a business from home with a dedicated area, NOT for employees just working from home
When actual cost method beats fixed rate
Roughly: if you're working 30+ hours/week from home and you have:
- A dedicated home office room (so you can claim cleaning + decline-in-value of fixtures)
- A home internet bill where work use is clearly >50%
- A mobile phone bill where work use is clearly >50%
- High electricity bill due to dedicated equipment
For these users, actual method can yield $1,800-3,500/year vs ~$1,277 at fixed rate.
When to use a Tax Agent
The fixed rate method is genuinely simple — most WFH employees can DIY. Consider an Agent if:
- You're switching from actual to fixed (or vice versa) — needs a calculation comparison
- Your employer paid a WFH allowance (it's assessable income, sometimes fully sometimes partial)
- You bought home-office equipment >$300 this year (depreciation schedule)
- You have a side ABN gig running from the same home office (apportionment between employment WFH and business use)
Need a professional? Browse every TPB-registered tax agent near you in the AusTax directory, or post a request and matching practices will contact you — free.
See main decision guide for the broader framework.
Need Help With Your Tax Return?
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*Disclaimer: This is general information only and does not constitute personal tax advice. Consult a registered tax agent for advice tailored to your specific situation. Always verify against the latest ATO guidelines at ato.gov.au.*
This is general information only — final WFH eligibility depends on your specific circumstances under ATO PCG 2023/1.