Work from Home Deductions in 2026

Expenses you can’t claim

You can’t claim a deduction for:

  • coffee, tea, milk and other general household items, even if your employer provides these at work
  • items your employer provides – for example, a laptop or a mobile phone
  • expenses your employer reimburses you for the cost.

✅ Eligibility Criteria

To claim working from home expenses, you must:

  • work from home to fulfil your employment duties, not just carrying out minimal tasks, such as occasionally checking emails or taking calls
  • incur additional running expenses because you work from home
  • have records that show you incurred these expenses, for example receipts.

To calculate your deduction for working from home expenses, you must use one of the methods set out below.

📊 Methods to Calculate Your Deduction

You can choose between two methods:

1. Fixed Rate Method (70¢ per hour)

  • Covers: electricity, internet, phone, stationery, and consumables such as printer ink and paper.
  • You cannot claim these expenses separately if using this method.
  • You must keep a record of actual hours worked from home (e.g., a diary or timesheet).

2. Actual Cost Method

  • Claim the actual expenses incurred.
  • Requires detailed records and receipts for each expense.
  • You must apportion costs between work and private use.

Would you like help calculating your deduction using one of these methods, or maybe a template to track your WFH hours and expenses?

Working from home deductions