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Working From Home: 70c an Hour Fixed Rate for 2025-26

Updated 17 October 2026 · General information · 2 min read

General information, not tax, legal or financial advice. We are not the ATO and are not a registered tax or BAS agent. Check ato.gov.au or ask an agent. Sources read on 17 October 2026. Dates and amounts after that are expected. Examples use made-up numbers. This page contains no affiliate links.

Short answer: The ATO's fixed rate method lets you claim 70 cents per hour you worked from home in the 2025-26 income year (also used for 2024-25). You multiply your total actual hours by the rate. You don't need a separate home office. (These pages are written for individuals claiming work-related expenses; sole traders running a business from home have separate rules we did not read.)

What the 70c covers (ATO)

  • home and mobile internet or data;
  • mobile and home phone;
  • electricity and gas for heating, cooling and lighting;
  • stationery and computer consumables such as printer ink and paper. It does not cover the decline in value of depreciating assets (computer, desk, chair), which can be claimed separately with their own records.

Records you must keep

  • a record of your actual hours worked from home for the entire income year (timesheet, roster, diary or similar; the ATO says an estimate is not acceptable);
  • at least one record for each type of covered expense you incurred, for example one electricity bill and one internet bill;
  • an explanation of the work performed from home, how you calculated the claim, and receipts/depreciation details for any separate claims. You also can't claim a separate deduction for phone or internet that the rate includes, even if used outside work hours.

In myTax 2026

Enter the dollar amount (not hours) and state the method used.

Example (made-up)

1,000 hours x $0.70 = $700. Hours are not an estimate, so keep the diary.

Related

Lodging by 31 October

FAQ

Which rate for 2026-27?

Not published in what we read.

Do I keep records?

The ATO says in most cases for a number of years from lodgment; one excerpt said five years (not fully shown).

What we could not verify

  • The pages were read as search excerpts only, not in full (the live page returned 404 on the URL we guessed).
  • The record-keeping period (5 years from lodgment is in a search summary; the ATO excerpt says "in most cases").
  • The rate for 2026-27 and the actual cost method.
  • Sole trader home-based business expense rules.

Sources