Free calculator · Current rates
Work from home deduction calculator
Run both methods side by side — 70 cents per hour against actual apportioned costs — and see the difference in dollars and in tax saved.
Which work-from-home method gives a bigger deduction?
It depends on your space and your bills. The fixed rate (70c per hour) is simple and covers energy, internet, phone and stationery, and typically produces $500–$900 for someone working from home two to three days a week. The actual cost method claims the apportioned work-related share of each expense and usually wins where there's a dedicated room, high energy use, or a large internet and phone spend — often by a factor of two. Under both methods, furniture and equipment are depreciated separately.
- Fixed rate: 70c per hour
- Actual cost: apportioned by floor area and use
- Hours must be recorded for the full year
- Equipment depreciation claimed on top
Calculator
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Book a free consultationThe record that decides the claim
Both methods now require you to know your hours. Under the fixed rate you need a record of the actual hours worked from home across the full income year — a diary, roster, timesheet or spreadsheet kept as you go. A four-week sample extrapolated across the year was acceptable under earlier rules and is not accepted now.
The easiest system: a recurring calendar entry, or a running note in your phone. Five seconds a day, and it's the difference between a claim that holds and a claim that doesn't.
Where actual cost pulls ahead
A dedicated room, ducted air conditioning running through a Brisbane summer, a large NBN plan and a work-heavy mobile bill routinely produce $1,200–$2,000 under actual cost against $700–$900 at the fixed rate. The cost is paperwork: twelve months of bills and an apportionment you can defend.
Read the full method comparison in our work from home deductions guide.
| Expense | Fixed rate (70c/hr) | Actual cost |
|---|---|---|
| Electricity and gas | Included | Apportioned by area and use |
| Internet | Included | Work-use percentage |
| Mobile and home phone | Included | Work-use percentage |
| Stationery and consumables | Included | Actual work-related spend |
| Desk, chair, computer | Claimed separately | Claimed separately |
| Cleaning of the work area | Not included | Apportioned |
| Rent, mortgage interest, rates | No | Only if a genuine place of business (CGT consequences) |
FAQ
Questions about this calculator.
Is the fixed rate 67c or 70c?
70 cents per hour from 1 July 2024 onward. The 67c rate applied to 2022–23 and 2023–24, and the 80c shortcut rate ended in June 2022.
Can I claim rent or mortgage interest?
Employees, effectively never. A home-based business may claim a portion where an area is genuinely a place of business — but that generally exposes that portion of your home to CGT on sale, which frequently costs more than the deduction is worth.
Does the calculator assume a dedicated room?
Not for the fixed rate. For actual cost you need a defensible apportionment, which a dedicated room makes much easier. Working at the kitchen table is fine for the fixed rate.
Can I claim my desk and chair too?
Yes, separately from both methods. Items of $300 or less used for work can generally be claimed immediately by employees; more expensive items are depreciated over their effective life and apportioned for private use.
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