Home and assets

Working from home: actual-cost method

The work-related portion of each additional running expense incurred because you work from home.

Who can claim

This deduction is available to individuals.

  • You work from home to fulfil employment duties and incur additional running expenses.
  • You can substantiate each expense and the work-related percentage.

What you cannot claim

  • General household items such as tea, coffee and milk are private.
  • Children's education costs are private.
  • Do not claim costs your employer supplied, paid or reimbursed.
  • A working-from-home allowance is generally declared as income. It does not set the deduction; claim only the actual eligible costs you incurred.

How the amount is worked out

Sum each substantiated additional running expense multiplied by its work-related percentage. Do not duplicate a cost claimed under the fixed-rate method.

Records the ATO expects

  • Bills and invoices
  • Work-hours or usage evidence
  • Calculation showing additional and work-related portion

Where this rule comes from

Primary source: ATO working from home expenses (Updated 5 May 2025). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.

Next steps