The FisCalc
// ATO DEDUCTION

Work From Home
Deduction Calculator

Calculate your WFH tax deduction for FY2024–25. Compare the ATO's 67c/hour fixed rate method against the actual cost method, and see your estimated tax refund.Rates current as at 1 July 2025 · ATO FY2025–26

// YOUR_SITUATION
Income and working hours
Weeks worked from home46 weeks
Total WFH hours: 920 hrs/year
// ACTUAL_COST_INPUTS
Your home office running costs (for comparison)
Home office area (% of home)10%

Your data stays on your device — nothing is stored or sent.

Fixed rate (67c/hr)
$616
Tax saving: $213
✓ Better for you
Actual cost method
$1,970
Tax saving: $680
Best deduction
$1,970
Actual cost method
Est. tax refund
$680
At 35% marginal rate
Per week saving
$13
Annualised over 52 weeks
ATO Fixed Rate Method (FY2024–25): The revised fixed rate is 67c per hour WFH. It covers electricity, gas, internet, phone, stationery, and computer consumables. You can still separately claim depreciation on office furniture and equipment. You must keep a record of your WFH hours — a diary, timesheet, or calendar entry is acceptable.

Actual Cost Method: Requires detailed receipts and a logbook. Electricity and internet are apportioned by the percentage of your home used as an office. Phone is apportioned by work use. Generally better if your home running costs are high.
// ACTUAL_COST_BREAKDOWN
How the actual cost method is calculated
Electricity (10% of $2,400)$240
Internet (proportional work use)$480
Phone (50% work use)$600
Computer depreciation$300
Office equipment depreciation$150
Stationery / consumables$200
Total actual cost deduction$1,970
// RECORDS_REQUIRED
Fixed rate method: A record of all your WFH hours — a continuous diary/log, calendar entries, or timesheets. One representative 4-week diary period is no longer sufficient (ATO changed this from 1 March 2023). Keep records for 5 years.

Actual cost method: All receipts for electricity, internet, phone, stationery, and equipment. A depreciation schedule for computers and furniture. A floor plan or measurement to prove the area %. Records must cover the full income year.
General information only. WFH deductions require that you genuinely incur the expenses and are not reimbursed by your employer. You cannot claim home occupancy costs (rent, mortgage, insurance) unless you have a dedicated home office. Phone use for private calls is not deductible. Consult the ATO or a tax professional. Not financial or tax advice.

Next Step

Connect with a Registered Tax Accountant

Confirm your optimization eligibility with an ATO specialist.

Best deduction refund: $680
Get Started →

🔒 Your inputs never leave your browser window. Calculations run entirely client-side.

Claiming Work From Home Deductions in Australia

The ATO allows two methods for calculating work from home tax deductions for FY2024–25: the Fixed Rate Method (67 cents per hour) and the Actual Expenses Method. Your choice of method can have a significant impact on your refund — but the Actual Expenses Method requires substantially more record-keeping and carries risks most taxpayers don't anticipate.

The 67c Fixed Rate Method — what it does and doesn't cover

The revised fixed rate of 67 cents per hour (applicable from 1 July 2022) covers electricity and gas for heating, cooling, and lighting; home internet costs; mobile and landline phone costs; and stationery and computer consumables. It does not cover depreciation of office equipment, furniture, or computers — these can still be claimed separately under this method. To use this method, you must keep a representative 4-week diary showing your WFH hours and be able to demonstrate a consistent pattern. From FY2022–23, the ATO removed the simplified “shortcut” method that covered everything at 80 cents per hour.

The Actual Expenses Method — and the CGT trap

The Actual Expenses Method allows you to claim the actual running costs attributable to your home office area. You calculate the floor area of your dedicated workspace as a percentage of your home's total floor area, then apply that percentage to relevant expenses. However, claiming occupancy costs — rent, mortgage interest, or council rates — under this method may trigger a partial loss of the main residence Capital Gains Tax exemption when you eventually sell your home. Most owner-occupiers should avoid claiming occupancy costs for this reason. Renters face no CGT risk but must be aware of the record-keeping burden.

Can I claim WFH deductions if I work from home occasionally?
Yes, but only for the actual hours you worked from home — not your full contracted hours. If you work 5 days a week and are in the office 3 days, you can claim for 2 days' worth of hours. The ATO requires either a consistent diary record or actual timesheets. Estimates without records are not accepted. A “representative 4-week record” must genuinely reflect your work pattern across the year.
What records does the ATO require for WFH claims?
For the fixed rate method, you need a record of the total number of WFH hours for the year (a diary, timesheet, or roster) and evidence of at least one expense incurred — for example, an internet or phone bill. You do not need to calculate the business-use percentage of each expense. For the actual expenses method, you need invoices, receipts, and a floor area calculation for every expense claimed. Keep all records for five years after you lodge.
Can I claim both the fixed rate and actual equipment depreciation?
Yes. Under the fixed rate method, you can still separately claim the decline in value (depreciation) of work-related assets such as computers, monitors, ergonomic furniture, and webcams. The fixed rate covers running costs only. Assets costing $300 or less can be written off immediately. Assets over $300 are depreciated over their effective life — typically 3–4 years for computers. You need receipts and must apportion the deduction for any personal use.
Does my employer reimbursing some costs affect my claim?
You can only claim expenses you personally incurred and that were not reimbursed. If your employer pays for your internet or provides a phone allowance, you cannot claim those costs. If your employer provides a partial reimbursement, you can claim the unreimbursed portion — but you'll need documentation showing the total cost and what was reimbursed. The ATO cross-references employer FBT returns, so inaccurate claims attract risk.

// INCOME_TAX

Your WFH deduction reduces taxable income. See your full income tax breakdown after deductions.

Income Tax Calculator →

// BUDGET

Track your home running costs to maximise your WFH claim and understand your household cash flow.

Budget Calculator →
General information only. This calculator is a planning tool. It does not constitute financial, tax, or legal advice. For advice specific to your circumstances, consult a licensed financial adviser or registered tax agent. Figures use current ATO rates and are indicative only.

Related Calculators