What is the WFH fixed rate for 2025-26?

The ATO's fixed rate for working from home is $0.70 per hour for the 2025-26 income year (effective 1 July 2024 onwards under PCG 2023/1, confirmed for 2024-25 and 2025-26). It covers electricity, gas, internet, phone, stationery and consumables. You cannot claim these items separately if you use the fixed rate.

Do I need receipts for the fixed rate method?

You don't need receipts for the items the fixed rate covers (electricity, internet, phone, stationery). But you DO need to keep a record of all WFH hours throughout the year — timesheets, a diary, your roster, or any document showing actual hours worked from home. The ATO will not accept estimates.

Can I claim my mortgage or rent as a WFH deduction?

No, unless your home is a genuine 'place of business' (running a business with a dedicated client-facing space). For most employees working from home as a convenience, occupancy expenses (rent, mortgage interest, rates, home insurance) are not deductible. Claiming them can also trigger CGT issues when you sell your home.

Which is better — fixed rate or actual cost?

Generally, the fixed rate wins for typical WFH hours (15-30 per week) with modest household bills. Actual cost wins when you have high-value office furniture you can depreciate, expensive work-only stationery, or a high-speed internet plan used heavily for work. The actual cost method also lets you claim phone and internet separately if you don't choose the fixed rate.

What records do I need for the actual cost method?

Receipts or invoices for every expense, a 4-week representative diary showing your work-use pattern for shared items (internet, electricity), proof that each item was actually used for work, and a depreciation schedule for any office furniture or equipment over $300. The substantiation burden is much higher than the fixed rate.

WFH Tax Deduction Calculator 2025-26

Compare the ATO's $0.70/hour fixed rate against the actual cost method. Find out which gives you the bigger refund — and what records you need to back it up.

Last verified: 2 August 2026

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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.

WFH Tax Deduction Calculator 2025-26

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