The fixed rate method allows you to claim 67 cents for every hour you work from home in FY2022–23 and later financial years. It covers most running costs in a single rate, making it the simpler of the two methods. However, it requires a full-year diary of hours — and equipment depreciation must be claimed separately.
What the 67c Rate Covers
The revised fixed rate (introduced from 1 July 2022, replacing the temporary 80c COVID rate and the previous 52c rate) covers:
- ✅ Electricity and gas usage for heating, cooling, and lighting during work hours
- ✅ Home internet (work portion)
- ✅ Mobile and landline phone (work portion — calls, data)
- ✅ Stationery and computer consumables (paper, ink, toner, USB drives)
Because these are bundled into the rate, you cannot also separately claim electricity, internet, or phone on top of the 67c/hr rate.
What the 67c Rate Does NOT Cover
These must be claimed separately on top of the rate:
- ✅ Depreciation (decline in value) of work-related equipment: laptop, desktop, monitor, printer, keyboard, mouse, headset, desk, chair
- ✅ Repairs and maintenance of home office equipment
- ✅ Any work-related equipment costs not included in the fixed rate categories above
If you purchased a work laptop during the year, you claim its depreciation separately regardless of which WFH method you use.
Record-Keeping Requirement — Full Year Diary
From FY2022–23, the ATO requires a diary of actual hours worked from home for the full income year. The four-week representative diary that was accepted under the earlier 52c rate is no longer accepted for the fixed rate method.
What a valid diary looks like:
- A record of start and end times for work sessions at home
- Could be a calendar, spreadsheet, timesheet app, or written log
- Must cover every day you worked from home throughout the year
- Does not need to be elaborate — “Monday 8am–12pm WFH” is sufficient
The ATO may request this diary if your return is reviewed. Without it, the claim may be disallowed.
Calculating the Claim
Formula: Total hours worked from home × $0.67
Example — office worker who WFH 3 days per week:
- 3 days × 7 hours = 21 hours per week
- 21 hours × 48 working weeks = 1,008 hours
- 1,008 × $0.67 = $675.36
Plus (claimed separately): Decline in value of work laptop purchased for $1,500 — effective life 3 years, 80% work use = ($1,500 ÷ 3) × 80% = $400/year
Total WFH deduction: $675.36 + $400 = $1,075.36
Choosing Between Fixed Rate and Actual Cost
The fixed rate is best when:
- Your actual electricity, internet, and phone costs attributable to work are low
- You want minimal record-keeping beyond the hour diary
- You do not have a dedicated home office with significant running costs
The actual cost method may give a larger claim when:
- You have a dedicated room with high electricity or gas usage
- Your actual internet and phone work proportions are higher than what the 67c rate reflects
If uncertain, you can calculate both and choose the higher result (as long as you have the records to support whichever you choose).
Frequently Asked Questions
Does the 67c rate apply from dollar one, or is there a minimum hours threshold? There is no minimum hours threshold. Even one hour worked at home is deductible at 67c.
I work from home full-time (5 days per week). How much can I claim? Full-time WFH: 7–8 hours × 5 days × 48 weeks ≈ 1,680–1,920 hours × $0.67 = approximately $1,126–$1,286, plus equipment depreciation claimed separately. This is illustrative — use your actual hours.
My employer pays a WFH allowance — do I still claim? Include the allowance as income (it should appear on your income statement). Then claim the deduction as normal — the net effect is that you are only deducting the amount you actually spent above the allowance.
Can I switch methods between years? Yes. You choose a method each year. If the actual cost method gives a better result one year and the fixed rate another, you can switch — as long as you have the records to support whichever method you use.
This article provides general tax information. For advice tailored to your situation, speak with a registered tax agent. Find one through the Tax Practitioners Board register.