Home Office Expense Calculator

Compares the ATO fixed-rate method against the actual-cost method for work-from-home deductions.

Rates & assumptions used in this calculator

Fixed-rate method: 70 cents per hour worked from home, unchanged for both FY2025-26 and FY2026-27 (revised method effective from 1 July 2022, PCG 2023/1). This single rate covers electricity, gas, phone, internet and stationery — these cannot be claimed again separately under this method.
A continuous, contemporaneous record of actual hours worked from home is required for the fixed-rate method — the ATO does not accept estimates or a representative four-week diary.
Actual-cost method: the real work-related portion of each bill (electricity, gas, phone, internet, cleaning, consumables), based on a reasonable floor-area or usage apportionment.
Under both methods, depreciation on office equipment (laptop, monitor, desk, chair) can be claimed separately — items $300 or less with predominantly work use can be deducted immediately; items over $300 are depreciated over their effective life.
This tool doesn't calculate equipment depreciation itself — add it as a lump-sum estimate to either method if relevant.

Sourced from ATO published guidance (PCG 2023/1, fixed rate method) as at July 2026. Verify current requirements at ato.gov.au before lodgement.

Fixed-rate method inputs

20 hrs/week · 48 weeks

Hours worked from home per week

hrs

Weeks worked in the year

Typically 48, excluding 4 weeks' annual leave

wks

Actual-cost method inputs

$3,200 bills · 25% work use

Annual electricity, gas, phone & internet bills

Work-use apportionment

Based on floor area, hours used, or a reasonable basis

Other work-related costs

Stationery, printer consumables, cleaning

Fixed-rate method

960 hours × 70c

Actual-cost method

25% of $3,200 + other costs

Maximize Your Home Office Deduction?

Claim every eligible home office expense accurately using the fixed-rate or variable method. Our accountants ensure you're claiming maximum deductions while maintaining ATO compliance.

Both methods compared ATO-defensible Maximum claims

This is a general estimate only, not tax advice. It doesn't verify hours records, floor-area apportionment, or equipment depreciation. Mixing the fixed rate with separate claims for electricity, phone or internet is not allowed — choose one method for the running-cost component. Refer to a registered tax agent to confirm the correct method and figures.