Calculate your WFH tax deduction using the ATO's 67 cents per hour fixed rate method and see your estimated tax saving for 2024–25.
The ATO's 67 Cents Per Hour Fixed Rate Method
From 1 July 2022, the ATO introduced a revised fixed rate of 67 cents per hour for work from home expenses. This replaced the previous 52c/hour and 80c/hour (shortcut) methods.
What the 67c Rate Covers
- Electricity and gas (lighting, heating, cooling your workspace)
- Home internet expenses
- Mobile and home phone usage
- Stationery and computer consumables (paper, ink, etc.)
What Can Still Be Claimed Separately
The 67c rate does not cover everything. You can still claim separately:
- Depreciation of office furniture (desk, chair)
- Depreciation of technology assets (computer, monitor, headset)
- Repairs to WFH equipment
Record-Keeping Requirements
To use the fixed rate method, the ATO now requires you to keep a record of actual hours worked from home for the entire year — a 4-week representative diary is no longer sufficient (this changed from 1 March 2023). Acceptable records include timesheets, rosters, diary entries, or a spreadsheet log.
Do You Need a Dedicated Home Office?
No. Unlike the actual cost method, the fixed rate method does not require you to have a dedicated room used solely as a home office. You can work from your kitchen table or lounge and still use this method.
Frequently Asked Questions
How much can I claim for working from home?
Using the ATO's fixed rate method, you can claim 67 cents for every hour you work from home. For example, if you work 38 hours a week for 48 weeks, that's 1,824 hours × $0.67 = $1,222 deduction. Your actual tax saving depends on your marginal tax rate.
What records do I need to claim WFH expenses?
From 1 March 2023, the ATO requires a record of actual hours worked from home throughout the year. A timesheet, roster, calendar entry, or spreadsheet log for all days is acceptable. You also need at least one bill showing you incurred each type of expense covered by the rate (e.g., an electricity or internet bill).
What does the 67 cents per hour cover?
The 67c/hour rate covers electricity and gas, internet, mobile and home phone usage, stationery, and computer consumables. It does not cover depreciation of furniture or technology equipment — those can still be claimed separately under the actual cost method or as separate deductions.
Can I claim WFH expenses if I occasionally go into the office?
Yes. You claim based on the actual hours you worked from home, not your total work hours. If you work 3 days from home and 2 days in the office each week, you only count the hours worked from home when applying the 67c rate.
What is my marginal tax rate?
Your marginal tax rate is the rate at which your last dollar of income is taxed. For 2024–25: income $18,201–$45,000 = 16% (but the 19% rate still applies to some planning scenarios given LITO effects); $45,001–$135,000 = 30% (effectively 32.5% with Medicare); $135,001–$190,000 = 37%; $190,001+ = 45%. Use our income tax calculator to find your exact position.
Is there a better method than the 67c fixed rate?
For some taxpayers, the actual cost method may produce a larger deduction, particularly if you have high electricity costs or significant home office equipment. The actual cost method requires more detailed record-keeping and a dedicated workspace. Speak to a tax agent to determine which method is best for your situation.