WFH guide
ATO 67c/hour vs actual-cost WFH claim: which gets you more?
Compare the two common WFH deduction methods before tax time.
Quick checklist
- Calculate total WFH hours for the financial year.
- Estimate actual costs only when you can support the bills and work-use share.
- Keep a note explaining why your percentage is reasonable.
- Ask your accountant which method is better before lodging.
The fixed-rate method is about simplicity
The fixed-rate method multiplies eligible WFH hours by the ATO cents-per-hour rate. It is usually easier to document because the key record is your hours, backed by a roster, diary, timesheet, or similar record.
Worked example: 40 hours a week from home for 48 weeks is 1,920 hours. At 67c/hour, the planning estimate is $1,286.40 before your accountant checks eligibility and records.
Actual cost is about evidence
Actual-cost claims depend on bills, work-use percentages, and a defensible method. If your quarterly electricity bill is $450, your home-office use is 40%, and only part of the home is used for work, the supportable claim can shrink quickly.
The bigger number is only better when the evidence is better. TaxBoy helps by keeping the bills, receipts, categories, and notes together before EOFY.
When the higher number is not automatically better
A bigger estimate is only useful if you can back it up. If actual cost depends on scattered bills, rough guesses, or purchases you cannot find anymore, the simpler method may be the smarter path.
Run the calculator for direction, then use your records to decide what is actually supportable.
Receipts to search for
Sources
Last reviewed 28 Apr 2026 by Kalana Vithana. TaxBoy is not a registered tax agent and this article is general information, not tax advice.