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Worked from home? 70c an hour
Short answer
For 2025-26 the ATO fixed rate method for working from home is 70 cents per work hour. It covers home and mobile internet and data, phone usage, electricity and gas, and stationery and computer consumables. You need a record of your actual hours (an estimate is not accepted), and in the ATO's own example 843 hours x 70c is a $590 deduction, which is a deduction, not tax saved.
Last reviewed: 25 October 2026. General information only - not personal advice. Tax7 prices are ex GST.
Related: Individual tax returns, Deduction finder
Full text of the video
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- 2025-26Worked from home?70cper work hourthe fixed rate method
- The Rate CoversInternet and dataPhone usageElectricity and gasStationery and ink
- ATO Worked Example 2025-26843 hours x 70c$590a deductionnot tax saved
- THE CATCHRecord your actual hours as you workEstimates are not accepted
- ALSO KEEPOne bill for each running expenseand don't claim those costs again separately
- Get it right before you lodge.
Sources
- ATO - Working from home: fixed rate method
2024-25 and 2025-26: use 70 cents per work hour
home and mobile internet or data expenses
mobile and home phone usage expenses
electricity and gas (energy expenses) for heating, cooling and lighting
stationery and computer consumables, such as printer ink and paper.
she can claim a deduction of $590 (843 hours x 70c) in her 2025-26 tax return.
a record of the number of actual hours you work from home during the entire income year - for example, a timesheet, roster, diary or other similar document (an estimate of your hours won't be acceptable)
at least one record for each of the additional running expenses you incur that the rate per work hour includes
If you're using this method, you can't claim an additional separate deduction for these expenses.
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