Can I claim work from home expenses on my tax return 2026?
Yes, you can claim work from home expenses on your Australian tax return for the 2026 financial year. The Australian Taxation Office (ATO) provides methods for deducting costs like energy, internet, and stationery, though rules can change, so always check the latest guidance.
Was this helpful?
10 readers found this helpful
10 readers found this helpful
How it works in practice
Claiming Work From Home Expenses
Australians working from home can generally claim a deduction for expenses directly related to their work. The Australian Taxation Office (ATO) allows taxpayers to claim these costs through one of two methods: the revised fixed rate method or the actual cost method. Both methods require taxpayers to meet specific eligibility criteria and maintain accurate records to substantiate their claims.
Eligibility and Methods
To claim, you must incur additional expenses because you are working from home, and these expenses must be directly related to your employment duties. The revised fixed rate method, which has been in place since 1 July 2022, allows a deduction of 67 cents per hour for all running expenses, covering energy, internet, phone, stationery, and computer consumables. This method requires a record of all hours worked from home. Alternatively, the actual cost method allows you to claim the exact work-related portion of each expense, requiring detailed records and calculations for each item.
Record Keeping is Crucial
Regardless of the method chosen, comprehensive record-keeping is essential. For the fixed rate method, a diary or logbook detailing hours worked from home is sufficient. For the actual cost method, you need receipts, bills, and specific calculations demonstrating the work-related portion of each expense, such as an itemised phone bill or a dedicated area calculation for cleaning and depreciation of assets.
Important exceptions
Not all expenses are deductible, and the rules are subject to change by the ATO. For instance, rent, mortgage interest, property insurance, and land taxes cannot be claimed as working from home expenses. Depreciation of your home itself is also not allowed. Additionally, the fixed rate method covers specific running costs, meaning you cannot claim those individual expenses separately if using that method. The ability to claim larger assets like office furniture under the actual cost method requires detailed calculations and may have depreciation limits.
Taxpayers should verify the most current ATO guidelines for the specific tax year they are claiming, as methods and rates can be updated.
What you should do now
-
Understand the ATO's current guidelines for work from home expenses for the relevant financial year (e.g., 2025-2026 for 2026).
-
Determine if you will use the revised fixed rate method (e.g., 67 cents per hour) or the actual cost method based on your expenses and record-keeping.
-
Maintain diligent records, such as a diary of hours worked from home, utility bills, internet statements, and receipts for all work-related purchases.
-
Calculate your deductible expenses accurately using your chosen method, ensuring you only claim the work-related portion of shared expenses.
-
Lodge your tax return with the ATO, ensuring all claims are correctly reported and you can substantiate them if requested.
Expert Notes
No expert notes have been added to this question yet.
People also asked
Explore highly relevant questions and get instant verified short answers.