{"id":4225,"date":"2026-07-07T10:01:03","date_gmt":"2026-07-07T00:01:03","guid":{"rendered":"https:\/\/wiselinkaccountants.com.au\/working-from-home-deductions-2026-fixed-rate-records\/"},"modified":"2026-07-07T10:01:03","modified_gmt":"2026-07-07T00:01:03","slug":"working-from-home-deductions-2026-fixed-rate-records","status":"publish","type":"post","link":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/working-from-home-deductions-2026-fixed-rate-records\/","title":{"rendered":"Working From Home Deductions 2026: The 70c Rate and the Records the ATO Now Checks"},"content":{"rendered":"<p><script type=\"application\/ld+json\">{\"@context\": \"https:\/\/schema.org\", \"@type\": \"BlogPosting\", \"headline\": \"Working From Home Deductions 2026: The 70c Rate and the Records the ATO Now Checks\", \"description\": \"The working from home fixed rate is 70 cents per hour for 2025-26. Learn what it covers, the full-year hours record the ATO now requires, what equipment you can claim on top, and how the fixed rate compares with the actual cost method.\", \"image\": \"https:\/\/wiselinkaccountants.com.au\/wp-content\/uploads\/2026\/07\/2026-07-07-work-from-home-deductions.jpeg\", \"datePublished\": \"2026-07-07T09:00:00+10:00\", \"dateModified\": \"2026-07-07T09:00:00+10:00\", \"inLanguage\": \"en-AU\", \"mainEntityOfPage\": {\"@type\": \"WebPage\", \"@id\": \"https:\/\/wiselinkaccountants.com.au\/working-from-home-deductions-2026-fixed-rate-records\/\"}, \"author\": {\"@type\": \"Person\", \"name\": \"Lily Zhang\", \"jobTitle\": \"Founder & Principal Accountant\", \"hasCredential\": [\"CPA Australia member\", \"Registered Tax Agent\", \"ASIC Registered Agent\", \"NTAA Member\"], \"worksFor\": {\"@type\": \"AccountingService\", \"name\": \"Wiselink Accountants\"}, \"knowsLanguage\": [\"en\", \"zh\"]}, \"publisher\": {\"@type\": \"Organization\", \"name\": \"Wiselink Accountants\", \"logo\": {\"@type\": \"ImageObject\", \"url\": \"https:\/\/wiselinkaccountants.com.au\/wp-content\/uploads\/2020\/02\/logo.png\"}}, \"about\": \"Working from home tax deductions in Australia for 2026: the 70 cent fixed rate method, record keeping rules, depreciating assets, and the actual cost method, for employees in Melbourne and Brisbane\"}<\/script><\/p>\n<p>Working from home is one of the biggest deductions Australians claim, and it is also one of the easiest to get wrong. Two things changed that most people have not caught up on. The fixed rate went up to 70 cents an hour, and the record you need to back it up is now far stricter than the old four-week diary. If you plan to claim working from home in your 2026 tax return, here is what the method actually requires and where claims get cut.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/wiselinkaccountants.com.au\/wp-content\/uploads\/2026\/07\/2026-07-07-work-from-home-deductions.jpeg\" alt=\"Home office desk with laptop, notebook and coffee, showing a working from home setup for a 2026 Australian tax deduction\" \/><figcaption>The fixed rate for working from home is now 70 cents per hour. The catch is the record: the ATO wants your actual hours for the whole year, not an estimate.<\/figcaption><\/figure>\n<h2>The fixed rate is now 70 cents an hour<\/h2>\n<p>For the 2025 to 2026 income year, the fixed rate method lets you claim 70 cents for each hour you work from home. You take your total hours worked from home across the year and multiply by 0.70. That single rate is designed to cover your extra running costs while you work at home:<\/p>\n<ul>\n<li>Electricity and gas<\/li>\n<li>Home and mobile phone use<\/li>\n<li>Internet<\/li>\n<li>Stationery and computer consumables<\/li>\n<\/ul>\n<p>Because those items are already inside the 70 cents, you cannot claim them again on the side. Someone who claims the fixed rate and then adds a separate deduction for their phone or internet is double counting, and that is one of the first things the ATO looks for.<\/p>\n<h2>The record rule that catches people out<\/h2>\n<p>This is where most claims fall down. To use the fixed rate, you need a record of the actual number of hours you worked from home for the entire income year. A timesheet, roster, diary or logbook is fine, as long as you keep it as you go rather than reconstructing it in October.<\/p>\n<p>The old shortcut is gone. The ATO no longer accepts an estimate or a four-week representative diary that you scale up to the full year. If your record only covers a sample period, the fixed rate is not available to you. On top of the hours, you also need to keep at least one bill for each running expense the rate covers, for example one electricity bill and one phone bill, to show you actually incurred those costs.<\/p>\n<p>If you have not kept your hours since 1 July 2025, start today and keep going for the rest of the year. A partial record is better than none, and it protects next year&#8217;s claim in full.<\/p>\n<h2>What you can still claim on top of the rate<\/h2>\n<p>The 70 cents covers running costs, not equipment. You can claim the work related decline in value of assets you bought to work from home, separately from the fixed rate. That includes a desk, an office chair, a monitor, a laptop or a printer, to the extent you use them for work.<\/p>\n<ul>\n<li>An asset that cost 300 dollars or less can usually be claimed as an immediate deduction for the work related portion.<\/li>\n<li>An asset that cost more than 300 dollars is claimed over its effective life through depreciation, again only for the work related share.<\/li>\n<\/ul>\n<p>Keep the receipt and a note of how you split private versus work use. A laptop used 60 per cent for work gives you 60 per cent of the decline in value, not the whole thing.<\/p>\n<h2>Fixed rate or actual cost: which one suits you<\/h2>\n<p>The fixed rate is the simpler path and most employees land there. The alternative is the actual cost method, where you work out the real expense of each item and the work related portion of each one. Actual cost can produce a larger deduction if you have a dedicated home office and high bills, but it asks for a lot more evidence: receipts, apportionment calculations and a clear basis for every figure. If your setup is a laptop at the kitchen table a few days a week, the fixed rate almost always wins on effort for reward.<\/p>\n<table>\n<thead>\n<tr>\n<th><\/th>\n<th>Fixed rate (70c\/hour)<\/th>\n<th>Actual cost<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>What it covers<\/td>\n<td>Running costs bundled into one rate<\/td>\n<td>Each expense worked out individually<\/td>\n<\/tr>\n<tr>\n<td>Records needed<\/td>\n<td>Full year of hours, plus one bill per expense<\/td>\n<td>Receipts and apportionment for every item<\/td>\n<\/tr>\n<tr>\n<td>Best for<\/td>\n<td>Most employees with a mixed home setup<\/td>\n<td>Dedicated office, high running costs<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2>Three things that get working from home claims denied<\/h2>\n<ul>\n<li><strong>Estimating hours.<\/strong> A guess or a scaled up sample is not a record. Without genuine hours kept through the year, the fixed rate claim fails.<\/li>\n<li><strong>Double dipping.<\/strong> Claiming the 70 cent rate and separately claiming phone, internet or electricity means you are counting the same cost twice.<\/li>\n<li><strong>Claiming rent or mortgage interest.<\/strong> As an employee, you generally cannot claim occupancy costs such as rent, mortgage interest, council rates or home insurance, even with a room set aside for work. Those belong to a different situation, where the home is a genuine place of business, and they can affect the capital gains exemption on your home.<\/li>\n<\/ul>\n<p>Getting the mix right matters more this year because the ATO has flagged work related deductions as a focus area. If you want to see the wider list, read our note on the <a href=\"https:\/\/wiselinkaccountants.com.au\/ato-audit-red-flags-2026-tax-return-individuals\/\">ATO audit red flags for 2026<\/a>. And if you have not lodged yet, it is worth knowing <a href=\"https:\/\/wiselinkaccountants.com.au\/when-to-lodge-2026-tax-return-australia-pre-fill\/\">why waiting until your pre-fill is ready<\/a> saves you time and rework.<\/p>\n<h2>Frequently asked questions<\/h2>\n<h3>What is the working from home fixed rate for 2026?<\/h3>\n<p>For the 2025 to 2026 income year the fixed rate is 70 cents for each hour you work from home. You multiply your total hours worked at home by 0.70. The rate covers electricity and gas, phone, internet, and stationery and computer consumables.<\/p>\n<h3>Can I still use an estimate of my hours?<\/h3>\n<p>No. The ATO requires a record of the actual hours you worked from home across the whole income year, kept as you go. A four-week sample scaled up to the year is no longer accepted for the fixed rate method.<\/p>\n<h3>Can I claim my desk and laptop as well as the fixed rate?<\/h3>\n<p>Yes. The decline in value of equipment such as a desk, chair, monitor or laptop is claimed separately from the 70 cent rate, for the work related portion. Items costing 300 dollars or less can usually be claimed immediately, and more expensive items are depreciated over their effective life.<\/p>\n<h3>Which is better, the fixed rate or actual cost method?<\/h3>\n<p>It depends on your setup. The fixed rate is simpler and suits most employees. The actual cost method can give a bigger deduction if you have a dedicated home office and high running costs, but it needs receipts and an apportionment for every expense.<\/p>\n<h3>Can I claim rent or mortgage interest for working from home?<\/h3>\n<p>Generally no. Employees cannot claim occupancy costs such as rent, mortgage interest, rates or insurance. These only apply where your home is a genuine place of business, and claiming them can reduce the capital gains tax exemption on your home, so get advice first.<\/p>\n<h2>Sources<\/h2>\n<ul>\n<li>Australian Taxation Office (ATO), <em>Working from home expenses<\/em> and <em>Fixed rate method<\/em>, 70 cents per hour for 2025 to 2026<\/li>\n<li>Australian Taxation Office (ATO), <em>Records you need for working from home<\/em> (actual hours for the full year)<\/li>\n<li>Australian Taxation Office (ATO), <em>Depreciating assets and immediate deduction for items costing 300 dollars or less<\/em><\/li>\n<\/ul>\n<hr \/>\n<h3>About the author<\/h3>\n<p><strong>Lily Zhang<\/strong> is the founder of Wiselink Accountants, based in Camberwell, Melbourne. Since 2013 the firm has served more than 500 Australian individuals and small businesses. Lily is a CPA Australia member, Registered Tax Agent, ASIC Registered Agent and NTAA member, working in both English and Chinese with clients across Greater Melbourne and Brisbane.<\/p>\n<p>Not sure whether the fixed rate or actual cost method gives you a bigger refund, or worried your records will not hold up? <a href=\"https:\/\/wiselinkaccountants.com.au\/free-call\/\"><strong>Book a free 20-minute call<\/strong><\/a> and we will work it out with you and lodge it right. Serving <a href=\"https:\/\/wiselinkaccountants.com.au\/accounting-and-tax\/\">Melbourne<\/a> and <a href=\"https:\/\/wiselinkaccountants.com.au\/brisbane-accountants\/\">Brisbane<\/a>, in English and Chinese.<\/p>\n<p><em>This article is general information only and does not constitute advice for your personal circumstances. It is current as at 7 July 2026. Rates, thresholds and eligibility vary by situation, so check the latest ATO guidance and seek professional advice. Liability limited by a scheme approved under Professional Standards Legislation.<\/em><\/p>\n<p><script type=\"application\/ld+json\">{\"@context\": \"https:\/\/schema.org\", \"@type\": \"FAQPage\", \"mainEntity\": [{\"@type\": \"Question\", \"name\": \"What is the working from home fixed rate for 2026?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"For the 2025 to 2026 income year the fixed rate is 70 cents for each hour you work from home. You multiply your total hours worked at home by 0.70. The rate covers electricity and gas, phone, internet, and stationery and computer consumables.\"}}, {\"@type\": \"Question\", \"name\": \"Can I still use an estimate of my hours?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"No. The ATO requires a record of the actual hours you worked from home across the whole income year, kept as you go. A four-week sample scaled up to the year is no longer accepted for the fixed rate method.\"}}, {\"@type\": \"Question\", \"name\": \"Can I claim my desk and laptop as well as the fixed rate?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Yes. The decline in value of equipment such as a desk, chair, monitor or laptop is claimed separately from the 70 cent rate, for the work related portion. Items costing 300 dollars or less can usually be claimed immediately, and more expensive items are depreciated over their effective life.\"}}, {\"@type\": \"Question\", \"name\": \"Which is better, the fixed rate or actual cost method?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"It depends on your setup. The fixed rate is simpler and suits most employees. The actual cost method can give a bigger deduction if you have a dedicated home office and high running costs, but it needs receipts and an apportionment for every expense.\"}}, {\"@type\": \"Question\", \"name\": \"Can I claim rent or mortgage interest for working from home?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Generally no. Employees cannot claim occupancy costs such as rent, mortgage interest, rates or insurance. These only apply where your home is a genuine place of business, and claiming them can reduce the capital gains tax exemption on your home, so get advice first.\"}}]}<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Working from home is one of the biggest deductions Australians claim, and one of the easiest to get wrong. The fixed rate rose to 70 cents an hour for 2025-26, but the record behind it is stricter than the old four-week diary. Here is what the method covers, the full-year hours record the ATO now wants, what you can still claim on top, and the three mistakes that get claims cut. By Lily Zhang, CPA.<\/p>\n","protected":false},"author":5,"featured_media":4224,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,17,61,18],"tags":[],"class_list":["post-4225","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-topics","category-business-solutions","category-english-post","category-business"],"_links":{"self":[{"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/posts\/4225","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/comments?post=4225"}],"version-history":[{"count":0,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/posts\/4225\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/media\/4224"}],"wp:attachment":[{"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/media?parent=4225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/categories?post=4225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/tags?post=4225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}