Working From Home to Save Money: Your Right to Request Flexible Work in 2026
Working from home can save thousands per year on commuting, food, and clothing. Learn about expanded flexible work request rights from 2023, how to make a formal request your employer can only refuse on reasonable business grounds, and WFH tax deductions.
Who can request flexible work arrangements in 2026
The right to request flexible working arrangements is enshrined in the National Employment Standards under the Fair Work Act. Following significant expansions in June 2023, the eligibility criteria are broader than ever. You can make a formal request if you have worked for your employer for at least 12 months (or are a long-term casual with a reasonable expectation of continuing employment) and you fall into one of the following categories: you are a parent or have responsibility for the care of a child who is school-aged or younger; you are a carer under the Carer Recognition Act; you have a disability; you are 55 or older; you are experiencing family or domestic violence, or you are providing care or support to a member of your household or immediate family who is experiencing violence. Importantly, the 2023 changes also removed some restrictions and strengthened the process significantly. Flexible arrangements can include changes to hours, patterns of work, or location of work — meaning working from home, compressed work weeks, job sharing, or changed start and finish times are all within scope.
How much can you save by working from home?
The cost savings from working from home even a few days per week are substantial and directly combat cost-of-living pressures. Transport costs are typically the biggest saving — the average Australian commuter spends between $3,000 and $8,000 per year on fuel, tolls, parking, or public transport fares, depending on the city and distance. Food costs are next — buying lunch and coffee near the office easily runs $30-$50 per day versus eating from your kitchen at home. Over a five-day week, that is $150-$250 in savings, or $7,000-$12,000 per year. Clothing and dry-cleaning costs drop when you are not maintaining a full professional wardrobe. Many workers also report reduced spending on impulse purchases associated with being in a commercial area. A 2024 survey by the Australia Institute found that workers who worked from home three or more days per week saved an average of $12,000 per year compared to full-time office workers. For a household with two working adults, switching to hybrid arrangements could free up $15,000-$20,000 per year — a meaningful buffer during a cost-of-living crisis.
How to make a formal flexible work request
Your request must be in writing and include details of the change you are requesting, the reason for the request (linked to one of the eligible circumstances), and the date you would like the arrangement to start. A well-structured request also addresses potential employer concerns proactively. For example: 'I am writing to formally request a flexible working arrangement under section 65 of the Fair Work Act. As a parent of a school-aged child, I am requesting to work from home on Tuesdays and Thursdays, commencing [date]. I have considered how this arrangement would work practically: I will maintain the same working hours (9am-5pm), be available by phone, video, and email throughout the day, and attend the office for team meetings and client-facing work on the other three days. I have a dedicated home office space with reliable internet. I believe this arrangement will maintain or improve my productivity, as my role involves primarily independent work that does not require physical presence in the office.' Including a trial period proposal (e.g., three months) can also help your employer feel more comfortable agreeing, as it reduces the perceived risk.
Employer can only refuse on reasonable business grounds
Under the 2023 amendments, your employer must respond to your request within 21 days and can only refuse on 'reasonable business grounds.' The legislation provides specific examples of what may constitute reasonable business grounds: the arrangement would be too costly, there is no capacity to change other employees' working arrangements to accommodate your request, it would result in a significant loss of productivity, it would have a significant negative impact on customer service, or it is impractical to change other employees' arrangements. Crucially, the employer must have genuinely tried to reach an agreement with you and must have considered alternative arrangements that could reasonably accommodate your circumstances before refusing. The refusal must be in writing and explain the reasonable business grounds relied upon. A blanket policy of 'we don't do remote work' is not a reasonable business ground — the employer must assess each request on its individual merits. If the employer fails to respond within 21 days, or provides a response that does not comply with the requirements, the employee can escalate the matter to the Fair Work Commission.
Appealing to the Fair Work Commission if your request is refused
The 2023 changes gave the Fair Work Commission new powers to deal with flexible work disputes, which was a major shift from the previous framework where employees had limited recourse. If your request is refused and you believe the refusal was not on reasonable business grounds, or if your employer failed to comply with the procedural requirements, you can apply to the FWC for a dispute resolution. The FWC will first attempt to resolve the matter through conciliation — a facilitated discussion where a Commission member helps you and your employer reach an agreement. If conciliation does not resolve it, the FWC can conduct a conference or hearing and make orders, including ordering the employer to grant the request. The FWC considers all the circumstances, including whether the employer genuinely explored alternative arrangements, whether the stated business grounds are reasonable, and the impact on the employee if the request is not granted. The application fee for a general protections dispute involving flexible work is minimal, and you do not need a lawyer — though union representation is common and helpful.
Tax deductions for working from home
If you work from home, you can claim tax deductions for the additional running costs you incur. From the 2022-23 financial year onward, the ATO introduced a revised fixed-rate method: you can claim 67 cents per hour for every hour you work from home, which covers electricity, gas, phone, internet, stationery, and computer consumables. You must keep a record of the actual hours worked from home — a timesheet, roster, diary, or time-tracking app — for the entire income year. You can no longer use a four-week representative period and extrapolate. On top of the 67-cent rate, you can separately claim depreciation on assets used for work (desk, chair, computer, monitor) and repairs to these assets. If a room is set aside exclusively as a home office, you may also claim occupancy expenses (a proportion of rent, mortgage interest, rates, and insurance), though this can trigger capital gains tax implications if you own your home. Keep receipts for all assets purchased and a record of the percentage of work use versus personal use for shared items like internet and phone plans.
Hybrid work arrangements: Finding the right balance
Pure remote work is not always practical or desirable, and many employers and employees find hybrid arrangements — splitting time between home and the office — deliver the best of both worlds. When negotiating a hybrid arrangement, consider which tasks genuinely benefit from face-to-face interaction (collaborative brainstorming, team building, mentoring, sensitive conversations) versus tasks that are better done in a quiet, uninterrupted home environment (focused writing, analysis, coding, administrative work). Proposing a specific structure, such as 'in the office Monday, Wednesday, Friday; at home Tuesday and Thursday' gives your employer certainty about your availability and makes rostering easier. If your team has adopted a hybrid model, advocate for 'anchor days' where everyone is in the office on the same days, maximising the value of in-person time. Be proactive about maintaining visibility when working from home — attend virtual meetings with your camera on, provide regular progress updates, and make yourself available for ad-hoc conversations. Research consistently shows that hybrid workers report higher job satisfaction, lower burnout, and equivalent or higher productivity compared to full-time office workers, which strengthens the business case for these arrangements.
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General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.
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