Australia Home Office Expenses Calculator
Work out your working-from-home deduction — fixed rate or actual cost method. Enter your details — no button, results update as you type.
DEPRECIATING ASSETS (DESK, CHAIR, COMPUTER, ETC.) — CLAIMED SEPARATELY
Enter each expense category’s total annual cost and the percentage that’s work-related. There’s no ATO-set rate for this method — it’s your real costs, apportioned, with receipts to back each one up.
Australia Home Office Expenses Calculator
If you work from home, the ATO lets you claim a deduction for the extra running costs that creates — electricity, internet, phone, stationery — using one of two methods. This calculator handles both: the fixed rate method (a set number of cents for every hour you work from home, plus your desk/chair/computer claimed separately) and the actual cost method (your real expenses, apportioned to their work-related share). Enter your numbers and see your deduction update instantly.
The Fixed Rate: 70 Cents an Hour
Multiply the hours you worked from home during the year by 70 cents (the rate for 2024–25 and 2025–26 — the ATO hadn’t published a separate 2026–27 figure as of this tool’s last check, so 70c/hour is carried forward as the best-available number). That single rate already bundles in your electricity and gas, home and mobile internet, phone usage, and stationery/computer consumables — you can’t claim any of those separately on top of it. What you can still claim separately: your desk, chair, computer and similar equipment.
The $300 Line for Furniture and Equipment
Buy a desk, chair, monitor or similar item for $300 or less, and you can deduct the whole cost immediately in the year you bought it. Spend more than $300 on an item, and it has to be depreciated over its effective life instead — this calculator lets you enter whatever decline-in-value figure you’ve worked out for the year (via the ATO’s own Depreciation and capital allowances tool, since a full effective-life schedule is out of scope for a running-expenses calculator).
Worked Example (From the ATO’s Own Guidance)
Yang works from home 2 days a week and logs 567 hours for the year: 567 × 70c = $396.90. He also bought a $250 desk and a $299 chair, both under the $300 line, so both are immediately deductible in full: $396.90 + $250 + $299 = $945.90. Here’s the detail that trips people up — the ATO’s own instructions say to disregard the cents, not round them, so Yang claims exactly $945, not $946. This calculator applies that same rule automatically.
Actual Cost Method: When It’s Worth the Extra Record-Keeping
If your real running costs are higher than the fixed rate would give you — a big electricity bill from a home office with heavy cooling needs, say — the actual cost method lets you claim the genuine apportioned amount instead. There’s no ATO-set rate here: you total each expense category and apply the percentage that’s actually work-related, backed by real receipts and a record of how you calculated the work-use percentage.
Who Should Use This Calculator?
Employees who work from home for their job (not just occasionally checking email) and want to compare their likely deduction under both methods before deciding which to use and what records to keep. It’s built for employees claiming a running-expenses deduction — sole traders whose home is their principal place of business have a different set of rules (home-based business expenses), not covered here.
What This Calculator Doesn’t Cover
Occupancy expenses (mortgage interest, rent) and cleaning costs are only claimable in the narrow case of a genuinely dedicated home office — not modeled here since the eligibility test is fact-specific. Full effective-life depreciation schedules for assets over $300 aren’t calculated here either — use the ATO’s own depreciation tool for that figure, then enter it above. If your employer pays you an allowance for working from home, remember that’s assessable income you must declare separately — it isn’t netted against this deduction.
Official Sources
- ATO — Working from home expenses
- ATO — Fixed rate method
- ATO — Depreciation and capital allowances tool
Frequently Asked Questions
What is the ATO’s fixed rate for working from home in 2026-27?
70 cents per hour, the same as 2024-25 and 2025-26 — the most recently confirmed rate, since the ATO hadn’t published a 2026-27-specific figure as of this tool’s last check.
What does the fixed rate actually cover?
Internet, phone, electricity/gas, and stationery/computer consumables, all bundled in — none of these can be claimed separately under this method.
Can I claim my desk or laptop on top of the fixed rate?
Yes — items $300 or less are immediately deductible in full; items over $300 are depreciated over their effective life instead.
Why does my total round down instead of to the nearest dollar?
The ATO’s own rule disregards the cents rather than rounding — confirmed by their own example, where $945.90 is claimed as $945.
This calculator provides an estimate based on the ATO rules stated above. It doesn’t cover occupancy expenses, cleaning, full depreciation schedules, or sole-trader home-based business rules. Keep the records the ATO requires (actual hours, at least one receipt per expense type) to support any claim. Check ato.gov.au or a registered tax agent for advice about your specific situation.
