Working From Home Tax Deductions in Australia for 2026
If you're working from home in Australia, the Australian Taxation Office (ATO) allows you to claim tax deductions for expenses directly related to your home office. Understanding what you can and cannot claim is essential for maximising your tax return.
Deductible Items for Home Office Work
The following expenses can typically be claimed as tax deductions when you work from home:
- Internet and phone costs — a reasonable proportion of your home internet and phone bills used for work purposes
- Electricity and heating — a percentage of your utility costs based on the area of your home office
- Office furniture — desk, chair, filing cabinets, and shelving used exclusively for work
- Office equipment — computer, printer, monitor, keyboard, and mouse
- Stationery and supplies — paper, pens, folders, ink cartridges, and other consumables
- Software and subscriptions — accounting software, productivity tools, and work-related applications
- Home office rent — if you rent a dedicated space within your home for work
- Repairs and maintenance — fixing or maintaining items used exclusively for work
- Depreciation — wear and tear on office equipment over time
- Insurance — contents insurance for work equipment and furniture
Items You Cannot Claim
The ATO does not allow deductions for general household expenses, including mortgage interest, rent for your entire home, council rates, water rates, or home loan interest. You also cannot claim personal expenses such as meals, clothing, or entertainment.
Calculating Your Deduction
You can claim deductions using either the simplified method (fixed rate per hour worked) or the actual expense method (calculating a percentage of your total household costs). Keep detailed records and receipts to support your claims.
Working From Home Tax Deductions in Australia for 2026 — Quick Reference Sheet
Use this sheet to track and organise your home office tax deductions for the 2026 financial year:
| Expense Category | Item Description | Deductible? | Notes |
|---|---|---|---|
| Utilities | Internet and phone | ✓ | Claim work-related portion only |
| Utilities | Electricity and heating | ✓ | Percentage based on office area |
| Furniture | Desk, chair, filing cabinets | ✓ | Must be used exclusively for work |
| Equipment | Computer, printer, monitor | ✓ | Keep receipts and depreciation records |
| Supplies | Stationery, paper, ink | ✓ | Work-related consumables only |
| Software | Accounting, productivity tools | ✓ | Work-related subscriptions |
| Maintenance | Repairs to office equipment | ✓ | For items used exclusively for work |
| Insurance | Contents insurance for equipment | ✓ | Work equipment only |
| Household | Mortgage interest, rent | ✗ | General household expenses not deductible |
| Household | Council rates, water rates | ✗ | Not work-related |
| Personal | Meals, clothing, entertainment | ✗ | Personal expenses cannot be claimed |
How to Use This Sheet
Print or save this reference sheet and use it to identify which expenses qualify for deduction. Keep all receipts and invoices organised by category. For the 2026 tax year, you can claim using either the simplified method (fixed hourly rate) or the actual expense method (percentage of household costs). Consult with your accountant to determine which method suits your situation best.
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