Check your eligibility to calculate your working from home expenses using the fixed rate method – 67 cents per hour.

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Changes to the fixed rate method

The fixed rate method for calculating your deduction for working from home expenses has been revised. This revised method is available from 1 July 2022.

The fixed rate method has been revised to:

• increase the rate per work hour that you can claim when you work from home
• change the expenses the rate covers
• change the records you need to keep
• remove the requirement to have a home office set aside for work.

If you don't use the revised fixed rate method, you need to use the actual costs method to claim a deduction for the additional expenses you incur as a result of working from home.

Eligibility to claim

To use the revised fixed rate method, you must:

• incur additional running expenses as a result of working from home
• have a record of the total number of hours you work from home and the expenses you incur while working at home
• have records for expenses the fixed rate per work hour doesn't cover and that show the work-related portion of those expenses.

How it works

You can claim 67 cents for each hour you work from home during the relevant income year. The rate includes the additional running expenses you incur for:

• home and mobile internet or data expenses
• mobile and home phone usage expenses
• electricity and gas (energy expenses) for heating, cooling and lighting
• stationery and computer consumables, such as printer ink and paper.

The rate per work hour (67 cents) includes the total deductible expenses for the above additional running expenses. If you're using this method, you can't claim an additional separate deduction for these expenses.

How to claim expenses the fixed rate doesn't include

You can separately claim a deduction for the work-related use of technology and office furniture such as chairs, desks, computers, bookshelves. These are generally depreciating assets that decline in value over time. You can also claim the repairs and maintenance of these items.

If the item cost $300 or less and you use it mainly for a work-related purpose, you can claim an immediate deduction for the cost in the year you buy it. This may include items, such as keyboards, computer mouses, power boards, desk lamps and chargers.

You can claim a deduction for the decline in value of depreciating assets over the effective life of the item, if it either:

• cost more than $300
• forms part of a set that together cost more than $300.

You may choose to work out the decline in value of low-cost assets and low-value assets with a cost or opening adjustable value of less than $1,000 through a low-value pool. You calculate decline in value of depreciating assets in a low-value pool using a diminishing value rate.

Where you use your depreciating assets for both work and private purposes, you need to apportion your decline in value deduction. You can only claim the work-related portion as a deduction.

In limited circumstances where you have a dedicated home office, you may also be able to claim:

• occupancy expenses (such as mortgage interest or rent)
• cleaning expenses (such as the cost of cleaning that relates to the work-related use of a room in your house set up as a home office).

Calculate your deduction

Calculate your deduction manually using the steps below.

Steps for calculating your work from home deduction manually

Before you calculate your deduction, check you have all the records you are required to keep.

Step 1: Work out the total number of hours you worked from home

Work out the total number of hours you worked from home during the income year using your records – for example, your timesheets, rosters, diary or similar document you keep at the same time as when you work.

Step 2: Multiply your total work from home hours by the rate per hour

Multiply the total number of hours worked from home during the year by 67 cents per hour.

Step 3: Work out the decline in value of depreciating assets used for working from home

Calculate the work-related decline in value of any depreciating assets that you used to work from home during the income year.

Use our Depreciation and capital allowances tool to help work this out.

For more information, see Depreciating assets you use for work.

Step 4: Work out the amount of any other working from home expenses you incurred that the rate per hour doesn't cover

Use your records to work out the amount of any other work-related expenses you incurred as a result of working from home.

Don't include any amount for expenses the rate per work hour covers.

Step 5: Add the amounts at step 2, step 3 and step 4 together

The total of step 2, step 3 and step 4 is the amount you claim as a working from home deduction in your tax return.