The fixed rate method uses a rate for each hour you work from home during the tax year, which includes the additional running expenses as a result of working from home which you incur for:
- Home and mobile internet or data expenses
- Mobile and home phone usage expenses
- Electricity and gas (energy expenses) for heating, cooling and lighting
- Stationery and computer consumables, such as printer ink and paper.
The rate per work hour includes the total deductible expenses for the above additional running expenses.
If you use this method, you can’t claim an additional tax deduction for these expenses.
For the tax year ending on 30 June 2026 the rate to be used is 70 cents per hour of working from home..
You can separately claim a deduction for the work-related use of technology and office furniture such as chairs, desks, computers, bookshelves. These are generally depreciating assets that decline in value over time.
You can also claim the repairs and maintenance of these items.
If the item cost $300 or less and you use it mainly to produce non-business income, you can claim an immediate deduction for the cost in the year you buy it. This may include items such as keyboards, computer mouses, power boards, desk lamps and chargers.
You can claim a deduction for the decline in value of depreciating assets over the effective life of the item, if it either:
- Cost more than $300
- Forms part of a set that together cost more than $300
- Is identical – or is substantially identical to – other items that together cost more than $300.
You may choose to work out the decline in value of low-cost assets and low-value assets with a cost or opening adjustable value of less than $1,000 through what is called a low-value pool.
You calculate the decline in value of depreciating assets in a low-value pool using a diminishing value rate.
You can’t allocate depreciating assets that cost $300 or less to a low-value pool if they are used mainly to produce non-business income and you can claim an immediate deduction for them.
When you use a depreciating asset for both work and private purposes you need to apportion your decline in value deduction.
You can only claim the work-related portion as a deduction.