Work From Home Deduction Calculator Australia — FY 2025-26
Calculate your WFH tax deduction using the fixed rate (67c/hour) or actual cost method. Compare which method gives you more. Calculate equipment depreciation and instant write-offs. Updated for FY 2025-26. The 80c COVID shortcut rate has expired.
Try another scenario
How to Use This Calculator
Fixed Rate (67c/hour) tab
Enter the hours per week you work from home and the weeks per year (excluding leave). Add any equipment or furniture depreciation claimed separately. Select your marginal tax rate. The calculator computes your total WFH deduction and tax saving.
Actual Cost Method tab
Enter your actual annual expenses for electricity, internet, phone, and stationery, along with the work-related percentage for each. The calculator compares this to the fixed rate method and recommends which is better for you.
Equipment Depreciation tab
Enter the cost of a work item, the percentage used for work, and the effective life. The calculator determines whether you get an instant write-off (≤$300) or need to depreciate over multiple years.
Share your result
All inputs are encoded in the URL. Click Share to send your exact calculation to your accountant or tax agent.
The Formula
WFH deduction = hours worked from home × $0.67
Total deduction = WFH deduction + equipment depreciation + furniture depreciation
Tax saving = total deduction × marginal tax rate
Actual Cost Method:
Each expense = annual cost × work-related %
Total deduction = electricity (work %) + internet (work %) + phone (work %) + stationery + equipment depreciation
Equipment Depreciation (Prime Cost):
If cost ≤ $300: instant write-off = cost × work %
If cost > $300: annual depreciation = (cost × work %) ÷ effective life in years
Tax Saving:
Tax saving = total deduction × marginal tax rate
Worked Example
WFH 3 days/week (24 hours), 48 weeks, $2,000 laptop (80% work), 37% marginal rate
An employee working from home 3 days per week, with a laptop purchased during the year.
Step 1: Fixed rate deduction
Step 2: Equipment depreciation
Step 3: Total deduction and tax saving
Verdict: Working from home 3 days per week with a $2,000 laptop gives a total annual deduction of $1,172 and a tax saving of $434. The fixed rate method ($772) plus equipment depreciation ($400) are claimed separately.
WFH Deduction Rates at a Glance (FY 2025-26)
Fixed rate method — what it covers
| Item | Covered by 67c? |
|---|---|
| Electricity | Yes |
| Internet | Yes |
| Phone (mobile/landline) | Yes |
| Stationery & computer consumables | Yes |
| Equipment depreciation (laptop, monitor) | No — claim separately |
| Office furniture depreciation (desk, chair) | No — claim separately |
| Rent / mortgage interest | No — NOT deductible for employees |
| Council rates / home insurance | No — NOT deductible for employees |
The 67c/hour rate has applied since 1 July 2022. The old 80c COVID shortcut rate expired 30 June 2022.
Common equipment effective lives (ATO)
| Item | Effective Life | Instant Write-off? |
|---|---|---|
| Laptop / Computer | 4 years | If ≤ $300 |
| Monitor / Display | 5 years | If ≤ $300 |
| Printer | 5 years | If ≤ $300 |
| Mobile Phone | 3 years | If ≤ $300 |
| Tablet / iPad | 2 years | If ≤ $300 |
| Office Desk | 10 years | If ≤ $300 |
| Office Chair | 10 years | If ≤ $300 |
$300 instant write-off applies to the total cost of each individual item. If the item is used partly for personal use, only the work-related portion is deductible.
Marginal tax rates (Stage 3, FY 2025-26)
| Taxable Income | Marginal Rate |
|---|---|
| $0 – $18,200 | 0% |
| $18,201 – $45,000 | 16% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001+ | 45% |
Stage 3 tax cuts effective from 1 July 2024. Your marginal rate determines the tax saving from each dollar of deduction.