ATO Home Office Deduction Calculator (Australia)

Understand ATO Home Office Deductions

The Australian Taxation Office (ATO) allows individuals who work from home to claim deductions on expenses incurred during their work hours. If you perform work duties from home, you may be eligible to claim a fixed rate per hour for work-related costs.

Fixed Rate Method

The current fixed rate is 67 cents per hour. This rate covers expenses such as electricity, internet, mobile phone usage, stationery, and computer depreciation. No separate records are required for each category — only total hours worked from home.

Eligibility Criteria

• You must be working from home to fulfill your employment duties.
• You must have a record of the number of hours worked from home (e.g., timesheets or rosters).
• Only hours worked from home for income-producing purposes count.

How to Use This Tool

This tool helps estimate your deduction by multiplying total hours worked by the ATO fixed rate. You can modify the default rate if future ATO updates occur.

Example:

If you work from home for 20 hours a week for 48 weeks, that’s 960 hours. Multiply that by 0.67, and your deduction would be AUD 643.20.

Records You Must Keep

• Keep a logbook, timesheet, or diary showing your hours.
• Retain bills or receipts for any additional work expenses.
• If using the fixed rate, you do not need to keep receipts for each individual cost category.

Additional Considerations

If you want to claim actual expenses rather than the fixed rate, you'll need a breakdown of home office expenses and supporting documents. This tool only applies to the fixed-rate method.

Why Use This Estimator?

• Instant, easy estimate of your home office deduction
• Based on the ATO-endorsed 67c/hour rule
• Perfect for salaried employees, freelancers, and hybrid workers

Disclaimer

This tool offers an estimate based on the ATO’s simplified fixed-rate method. For accurate tax filing, consult with a registered tax professional or visit the ATO website.