Who can claim
This deduction is available to individuals.
- You carry on a business from home and incur additional running costs because of that business use.
- For the fixed-rate method, you record the actual hours worked from home and incur at least one of the costs covered by the rate.
What you cannot claim
- Normal private living costs are excluded.
- Do not separately claim energy, phone, internet, stationery or consumables already covered by the fixed-rate calculation.
- Occupancy costs have additional place-of-business conditions.
How the amount is worked out
For 2025-26 and 2026-27, multiply actual business hours worked from home by 70 cents, or use the substantiated actual-cost method. Eligible decline in value, asset repairs and cleaning can be claimed separately because the fixed rate does not cover them.
Records the ATO expects
- Complete record of actual business hours worked from home
- Evidence of covered energy, phone, internet, stationery or consumable costs
- Actual-cost bills and business-use calculation where that method is chosen
- Asset, repair and cleaning records claimed separately
Where this rule comes from
Primary source: ATO home-based business expenses (Updated 30 June 2025). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.
Supporting sources:
- ATO PCG 2023/1 working from home expenses (PCG 2023/1)