Those days at the kitchen bench still cost you power, internet and phone. The fixed rate method turns each hour into a deduction, if your records hold up.
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By the Nomo team · Last reviewed 23 September 2026
For every hour you genuinely work from home, you claim 70 cents. That one rate covers electricity and gas, internet and data, your mobile and home phone, stationery and computer consumables. You can't claim any of those separately on top of it.
The maths is friendly. Two days a week at home for a year is roughly 750 hours, which is about $525 without collecting a single utility bill breakdown.
| Income year | Fixed rate per hour |
|---|---|
| 2024–25 | 70c |
| 2025–26 | 70c |
| 2026–27 | 70c |
This is where most claims fall over. You need a record of the actual hours you worked from home, for the whole year, kept as you go. A timesheet, a roster, a diary or an app all work.
What doesn't work is a guess in July, or a "typical week" multiplied by 48. Estimates aren't accepted.
You also need to keep one bill for each type of expense the rate covers, like one electricity bill and one phone bill, to show you actually paid for them.
When you sit down to work, clock in. Nomo shows your deduction ticking up at 70c an hour.
Stepping away? Pause it. Done for the day? Clock off.
Every session is saved with the date and hours, and your total adds up across the year.
Record your hours as you work. That's the record the ATO wants, and it's what Nomo is built for. Nomo is an Australian tax deduction and mileage/work kilometre tracking app for PAYG employees and sole traders.
| Fixed rate | Actual cost | |
|---|---|---|
| What you claim | 70c per hour worked from home | The work share of your real costs |
| Records | Actual hours plus one bill per expense type | Detailed records of costs and work use |
| Effort | Low | High |
| Usually suits | Most people | Unusually high home office costs |
See the ATO's actual cost method if you think it pays more for you.
The fixed rate method is available to sole traders too, with the same need for a record of all the hours you work from home. If part of your home is set aside as a place of business, occupancy expenses like rent or mortgage interest may also be claimable. Those have their own rules, so read the ATO's home-based business expenses guide.
Nomo tracks the hours. It doesn't work out occupancy claims.
From 2026–27, work from home costs are among the work expenses you can either leave inside the $1,000 standard deduction or claim yourself. Two days a week at home is already about $525 before you count anything else.
Nomo's running total shows your WFH hours next to your trips and receipts, so you can see if your real deductions beat $1,000. Business WFH costs for sole traders aren't part of the standard deduction.
The full rules, including what you can claim on top: the $1,000 standard deduction, explained.
Hybrid and remote workers, teachers marking at home, and sole traders running their business from home.
Under the fixed rate method, 70 cents for each hour worked from home in 2026–27. Under the actual cost method, the work share of your real costs.
No. The ATO wants a record of the actual hours you worked from home, kept at the time.
Not for the fixed rate method. A dedicated room only matters for some claims, like cleaning.
Not separately if you use the fixed rate, because the rate already covers them.
Yes. The decline in value of equipment you use for work can be claimed on top of the fixed rate.
Yes, for hours worked from home in the business. Keep a record of the actual hours, just like employees.
Tap Start tracking when you begin and Clock off when you finish. Every session is saved with the date and time.
Tap in. Tap out. Done.
Your work from home hours, recorded as you work. 14 days free, no card needed.
Start 14-day free trialBy the Nomo team · Last reviewed 23 September 2026. We check these pages against current ATO guidance and update them when the rules change.
General information only, not tax advice. Rules change and everyone’s situation is different, so check ato.gov.au or talk to a registered tax agent about your situation. Nomo is a record keeping app, not a registered tax agent.