For educational purposes only. Not tax, legal, or financial advice. Tax laws change frequently. Consult a registered tax agent or CPA for your specific situation.

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    Audit + compliance

    Home Office Deduction — PCG 2023/1 Fixed Rate vs Actual Cost Method

    From 1 July 2024 the ATO fixed rate for home office hours is 70¢ per hour (PCG 2023/1, as amended). It covers electricity, gas, internet, phone, stationery and computer consumables — you cannot claim these separately if you use the fixed rate. The actual cost method is more work but can deduct more for heavy home-based workers.

    ATO substantiation expectations

    From 1 July 2022 the ATO requires a record of actual hours worked from home — not a representative four-week sample (that only applies to the actual cost method). Acceptable evidence includes a timesheet, diary, roster, or app log. Work-from-home claims have been flagged as an ATO enforcement focus in 2026.

    Historical rates (don't confuse them)

    • FY 2022-23 and FY 2023-24: 67¢/hr.
    • FY 2024-25 onwards (including FY 2025-26): 70¢/hr.

    Older rates are not "wrong" for prior years — they are the rate for that year. If you're amending a 2023 return, use 67¢; if you're lodging FY 2025-26, use 70¢.

    Cross-references

    See also Income Tax Calculator and the Motor Vehicle Deduction Calculator for related work-related-expense claims that follow similar substantiation principles.

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