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  • Fixed rate method

    You can use the fixed rate method to work out your deduction for working from home expenses if you meet the eligibility and record keeping requirements.

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    Eligibility

    To use the fixed rate method, you must:

    • incur additional running expenses as a result of working from home
    • have a dedicated work area, such as a home office that you use when you work from home
    • records that show the work-related portion of expenses not covered by the fixed rate per hour
    • records of the number of hours spent working at home for the whole income year.

    How it works

    You can claim the fixed rate of 52 cents for each hour you worked from home. The rate includes the additional running expenses you incur for:

    • the decline in value of home office furniture and furnishings – for example, a desk
    • electricity and gas for heating, cooling and lighting
    • cleaning your home office.

    You can also claim the work-related portion of the following expenses, which are not covered by the 52 cents per hour rate, if you incur these expenses as a result of working from home:

    Calculate your work from home deduction

    Use our Home office expenses calculator to help work out your deduction.

    Record keeping for the fixed rate method

    To claim the work-related portion of your working from home expenses, you must keep:

    • a record of the number of actual hours you work from home during the income year or a diary for a representative four-week period to show your usual pattern of working at home
    • receipts or other written evidence that shows the amount spent on expenses and depreciating assets you purchase
    • phone accounts identifying your work-related calls and private calls to work out your percentage of work-related use for a four-week representative period
    • a diary that shows
      • your work-related internet use
      • the percentage of the year you use your depreciating assets exclusively for work.

    If you record your hours worked from home during a four-week representative period you can use it across the rest of the income year to work out the total number of hours you worked from home. However, if your work pattern changes you need to create a new record.

    If you don't have a representative four-week period of your hours worked from home or your work-related use of your phone, internet and depreciating assets because they vary throughout the income year, you will need to keep records for the entire income year.

    You can use the myDeductions tool in the ATO app to keep track of your expenses and receipts throughout the year. It’s a fast, easy way to capture information on the go by taking and uploading photos of receipts.

    Completing your tax return

    Once you calculate your deduction, enter the amount at 'Other work-related expenses' in your tax return.

    Last modified: 01 Jul 2021QC 66146