Work-From-Home Fixed Rate 2024–25: 67c Method Explained
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Primary tax-year context: 2024-25
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General information only. This is not tax or financial advice. Consult a registered tax agent for advice specific to your situation.
If you worked from home during 2024–25, the ATO’s revised fixed rate method lets you claim 67 cents for every hour you worked from home. This rate has applied since 1 July 2022 and replaces the old 52c rate. It is the simplest way to claim WFH expenses, but it comes with strict record-keeping requirements and some important limitations.
How the 67c fixed rate works
The fixed rate is straightforward: multiply your total work-from-home hours for the year by $0.67. The result is your WFH deduction under this method.
You do not need a dedicated home office. Working from the kitchen table or a shared space qualifies — provided you are actually performing your employment duties, not just checking emails occasionally.
What the fixed rate covers
The 67c rate is designed to cover the following running expenses:
- Electricity and gas — for heating, cooling, and lighting in the area where you work
- Internet — your home broadband or mobile data used for work
- Phone — the work-related portion of your home or mobile phone costs
- Stationery and computer consumables — paper, ink cartridges, USB drives, and similar items
Important: if you use the fixed rate method, you cannot claim any of these categories separately. The 67 cents per hour is meant to be an all-in rate for these expenses. Claiming, say, your internet bill on top of the fixed rate would mean claiming the same expense twice.
What you can still claim separately
The fixed rate does not cover the decline in value of assets or their repairs. You can claim these separately in addition to your 67c/hour deduction:
- Depreciation of office furniture — a desk, ergonomic chair, shelving, or monitor stand purchased for your home office. Most furniture is depreciated over 10 years under the ATO’s effective life schedule.
- Depreciation of equipment — laptop, monitor, keyboard, headset, or webcam used for work. Computers typically have an effective life of 3 years.
- Repairs and maintenance — if a work-use asset breaks and you pay for the repair, you can claim the work-use proportion.
If you have a dedicated room used exclusively for work, you may also be eligible to claim a portion of occupancy costs (rent or mortgage interest, council rates) — but only under the actual cost method, not the fixed rate. Seek advice from a registered tax agent before claiming occupancy expenses.
Records you must keep
This is where many people come unstuck. The ATO made record-keeping requirements stricter when it introduced the revised fixed rate in 2022-23. Estimating your hours is not enough.
You must keep a record of actual hours worked from home for the entire income year. Acceptable records include:
- A timesheet or roster (if your employer keeps one, ask for a copy)
- A diary or calendar showing your WFH days and hours
- A logbook where you note hours worked from home each day
A note saying “I work from home 3 days a week, roughly 7 hours a day” is not sufficient. The ATO has explicitly stated it will not accept a representative record or estimate for the fixed rate method — you need the actual hours.
You also need at least one document per expense category to show you incurred those expenses during the year (e.g. an electricity bill, a phone bill, an internet plan statement). These documents confirm you are eligible to use the method, even though you are not claiming the exact amounts.
For separately claimed assets (depreciation), keep the original purchase receipts and be able to demonstrate the work-use percentage.
Worked example
Tom is an analyst who works from home 3 days per week. He works 7.5-hour days and takes 4 weeks of annual leave, so his actual WFH weeks are approximately 48.
WFH hours calculation: 3 days/week × 7.5 hours/day × 48 weeks = 1,080 hours
Fixed rate deduction: 1,080 hours × $0.67 = $723.60
Tom also bought a laptop for $2,000 that he uses 60% for work. Laptops have an ATO effective life of 3 years, so the annual depreciation is $2,000 ÷ 3 = $666.67. His work-use portion: $666.67 × 60% = $400.00
Total WFH deduction: $723.60 + $400.00 = $1,123.60
At a 34.5% marginal rate (including Medicare levy), this deduction saves Tom approximately $388 in tax.
Fixed rate vs actual cost method
The fixed rate is not the only option. You can instead use the actual cost method, which requires you to calculate the exact work-related portion of each expense — your electricity bill, internet bill, phone bill, and so on — based on actual usage.
| Fixed rate (67c/hour) | Actual cost | |
|---|---|---|
| Records needed | Hours worked from home (full year) | Detailed bills + usage logs for each expense |
| Complexity | Low–medium | High |
| Result | Predictable | Potentially higher if you have a dedicated room or high electricity costs |
| Occupancy costs (rent/mortgage) | Cannot claim | May be claimable for a dedicated room |
| Best for | Most employees | Those with a dedicated home office and high running costs |
For the majority of employees who work from home a few days a week in a shared space, the fixed rate method is simpler and produces a reasonable result. The actual cost method is worth exploring if you have a room used exclusively for work or unusually high electricity costs — speak with a registered tax agent to compare the two.
Common errors the ATO highlights
- Estimating hours without a record — the ATO will not accept “I work from home about 4 hours a day.” You need actual records.
- Claiming internet or phone separately while also using the fixed rate — this double-counts those expenses.
- Including non-work hours — only hours spent performing employment duties count. Breaks, personal calls, and time you happen to be at home while on annual leave do not qualify.
- Claiming home-to-work travel as a WFH expense — these are separate categories and do not overlap.
- Forgetting separately claimable depreciation — many people leave money on the table by not also claiming the decline in value of their laptop or monitor.
Key takeaways
- The fixed rate for 2024–25 is 67 cents per hour worked from home.
- It covers electricity, internet, phone, stationery, and consumables — you cannot claim these separately.
- You can claim depreciation on furniture and equipment on top of the 67c rate.
- You must have a full-year record of actual hours — estimates are not accepted.
- If you have a dedicated home office room, consider comparing the actual cost method with a tax agent before lodging.