Work From Home (WFH) Tax Deductions Guide

If you work from home as an employee or business owner in Australia, you can claim tax deductions for the running expenses incurred while carrying out your employment duties.

The 2 Claim Methods Explained

The ATO allows taxpayers to choose between two methods to calculate WFH deductions:

1. Revised Fixed Rate Method (67c per hour)

Allows you to claim 67 cents for every hour worked from home. This rate covers:

• Electricity and gas usage (heating, cooling, lighting)
• Internet and data usage
• Mobile and home telephone expenses
• Stationery and computer consumables

Requirements: You must maintain a record of all hours worked (e.g. timesheets, roster, or diary log) and at least one bill for each expense category.

2. Actual Cost Method

Allows you to claim the exact work-related portion of all running expenses. Requires detailed calculation of floor space percentages, power consumption logs, and itemized bills.

Calculate Your WFH Tax Refund

To calculate your total WFH deduction and see how much tax it will save you, use our free Work From Home Tax Calculator and Tax Deduction Calculator.