Working From Home Deduction: What the 70 Cents an Hour Rate Saves You
The fixed-rate work-from-home deduction for 1, 2 or 3 days a week, the tax it saves at three salaries, and the records the ATO wants.
By the MoneyBackKit AU team · Updated 28 October 2026 · 2 min read
If you work from home, the ATO's fixed rate method lets you claim 70 cents for every hour you work from home. It covers electricity and gas, phone, internet, stationery and computer consumables. Here's what it's worth at tax time.
The deduction and the tax it saves
| Working from home | Hours a year | Deduction | Tax saved on $60,000 | Tax saved on $100,000 | Tax saved on $160,000 |
|---|---|---|---|---|---|
| 1 day a week | 350 h | $245 | $82 | $78 | $95 |
| 2 days a week | 699 h | $489 | $164 | $157 | $191 |
| 3 days a week | 1049 h | $734 | $246 | $235 | $286 |
What you need
- A record of the actual hours you worked from home for the whole year: a timesheet, roster, diary or similar, kept as you go.
- At least one bill or invoice for each expense the rate covers (for example one electricity bill and one phone bill).
- You must have paid those costs yourself and not been reimbursed.
- You can't also claim the costs the rate covers separately.
- Things the rate doesn't cover, such as a desk, chair or computer, can be claimed separately (over $300 they're depreciated).
- The actual cost method is the alternative; it needs detailed records but can give more if your costs are high.