What Is the 2026 Working From Home Fixed Rate?

Reference ID: 2605SN03 | By Mark Walmsley — Chartered Accountant | Registered Tax Agent | TPB 25498770

Published: Wednesday 20 May 2026 

RATE CONFIRMED: The WFH fixed rate for 2025-26 is 70 cents per hour (confirmed May 2026). Verify at ato.gov.au before publishing if significant time has passed since this confirmation.

The 2026 working from home fixed rate is 70 cents per hour. This is the ATO's shorthand method for calculating your WFH deduction — multiply your WFH hours for the year by 70 cents and that is your claim, without needing to separately calculate electricity, internet and other running costs.

Here is what the rate covers, what it does not cover, and the one record you must keep to use it.

What the 70 cents per hour rate covers

The fixed rate is an all-in calculation for the additional running costs of working from home. It covers electricity and gas for heating, cooling and lighting; home and mobile internet or data; mobile and home phone usage; and stationery and computer consumables such as printer ink.

The rate does not cover the decline in value of depreciating assets such as a laptop, phone or monitor. Those can be claimed separately under the depreciation rules, in addition to the fixed rate.

What the rate does not cover

You cannot claim home phone or mobile phone usage separately if you use the fixed rate for internet — the rate already incorporates internet costs. You can claim the work-related portion of your phone separately only if you are using the actual cost method rather than the fixed rate.

You also cannot claim occupancy expenses (rent, mortgage interest, council rates, insurance) using the fixed rate method. Occupancy expenses are only available under the actual cost method, and only where you have a genuinely dedicated workspace — and only if you understand the CGT main residence implications of doing so.

The one record you must keep

The ATO requires a contemporaneous record of your WFH hours. "Contemporaneous" means you recorded the hours at or near the time you worked them — not reconstructed later from memory. A diary, calendar, spreadsheet or app log all qualify.

You do not need a single document for the full year. A reasonable sampling period can be used to establish a pattern if you have a consistent weekly routine. But "I worked from home three days a week and that comes to X hours" without any supporting record will not satisfy the ATO. The record requirement has been explicit since the 2022-23 update to the WFH rules.

Fixed rate vs actual cost: a quick comparison

The fixed rate is simpler — one rate, one record. The actual cost method takes more work but can produce a higher deduction if your home running costs are substantial and your business-use proportion is high. For most PAYG employees, the fixed rate is the practical choice. For sole traders and freelancers running a dedicated home office, the actual cost method may be worth calculating. See the GoTax WFH Hub at gotax.com.au/blog/work-from-home-tax-deductions-2026 for the full comparison.

Ready to lodge?

Use the GoTax Tax Calculator at gotax.com.au/tax-calculator to estimate your refund with your WFH claim included. PAYG employees can lodge from $25 with the Quick Tax Return at gotax.com.au/quick-tax-return. A registered tax agent reviews every GoTax return before it reaches the ATO. Answers to common WFH questions are at gotax.com.au/faqs.

Frequently asked questions

Is the WFH fixed rate the same for 2025-26 as it was for 2024-25?

Confirm the current rate at ato.gov.au before lodging. The ATO reviews the rate annually. The rate below reflects the most recently confirmed rate at time of writing. Do not rely on the prior year rate without checking.

Do I need a dedicated home office to use the fixed rate?

No. The fixed rate applies whether you work at a kitchen table, a spare room or a dedicated study, as long as you are genuinely working from home. The dedicated workspace requirement applies only to occupancy expense claims under the actual cost method.

Can I use the fixed rate for the whole year if I only worked from home part of the year?

Yes. You claim for the actual hours worked from home during the year — not a full-year average. If you only worked from home for three months, your record covers those three months and your claim is based on those hours only.

About the author

Mark Walmsley is a Chartered Accountant (CA) and Registered Tax Agent with 32 years of Australian tax practice experience. He is the principal author of all GoTax tax content and the Registered Tax Agent responsible for every GoTax-lodged return. TPB Registration 25498770.

GoTax content is researched and drafted with AI assistance and reviewed before publication by Mark Walmsley, registered tax agent (TPB 25498770).

This content is general in nature and does not constitute personal financial or taxation advice. Tax outcomes depend on your individual circumstances. This content reflects Australian tax law as understood in May 2026. Consult a registered tax agent for advice specific to your situation.