Fixed Rate Method

The fixed rate method allows you to claim work from home running expenses at a flat rate of 70 cents per hour worked from home. The rate was 67 cents per hour from 1 July 2022 (replacing the previous 52 cents per hour rate), then revised up to 70 cents per hour from 1 July 2023 under PCG 2023/1 — the current rate. It covers: electricity and gas for heating/cooling and lighting, phone and internet usage, stationery and computer consumables. It does not cover the decline in value of furniture, equipment, or technology, which must be claimed separately.

To use this method, you need to keep a record of the actual hours you worked from home during the income year. The ATO accepts various forms of records, including timesheets, rosters, time-tracking apps, or a diary maintained for a representative 4-week period that is then extrapolated to the full year. You also need to have incurred additional running expenses as a result of working from home — if your employer pays for all your expenses, you can't claim.

In addition to the 70 cents per hour, you can separately claim the work-related portion of: the decline in value (depreciation) of office furniture (desk, chair, bookshelf), technology items (computer, monitor, keyboard, headset), and the cost of repairs to this equipment. For items costing $300 or less, you can claim an immediate deduction. For items over $300, you claim depreciation over the item's effective life.