Work From Home & Car Expenses: how it works
Rates checked 15 Oct 2026 against the ATO's fixed rate method.
Working from home: the ATO's fixed rate method lets you claim a set amount for every hour you work from home: 70c an hour for 2024-25 and 2025-26. The rate covers home and mobile internet and data, phone use, electricity and gas for heating, cooling and lighting, and stationery and computer consumables, so you can't claim those separately. You can still claim depreciation on work equipment and furniture such as a desk, chair or computer. You need a record of the actual hours you worked from home (a timesheet, roster or diary kept at the time) and at least one bill for each expense the rate covers. The actual cost method isn't covered here.
Car: the cents per kilometre method pays a set rate for every work-related kilometre, up to 5,000 km per car: 88c for 2024-25 and 2025-26, and 91c for 2026-27. The rate covers all running costs, including fuel, rego, insurance, servicing and depreciation. If you drive more than 5,000 km for work, the logbook method (total car costs × business-use percentage from a 12-week logbook) may give a bigger claim. Driving between home and your usual workplace usually doesn't count.
From 2026-27 eligible employees get a $1,000 standard deduction automatically, with no receipts needed. Work-related expenses you claim, including working from home and car, reduce it dollar for dollar, so claiming only adds to your deductions if they total more than $1,000. Union fees and professional association fees are the exception: claim them on top of the standard deduction.
General information only, not financial, tax or credit advice. Check your situation with the ATO, your state revenue office or a licensed adviser.
Work From Home & Car Expenses FAQs
What is the working from home rate for 2025-26?
70 cents for each hour you work from home, the same as 2024-25. It covers internet, phone, energy and stationery. The ATO's examples round the result down to whole dollars.
What is the ATO cents per km rate for 2026-27?
91 cents per kilometre, up from 88c in 2024-25 and 2025-26. You can claim up to 5,000 work-related kilometres per car.
Should I claim working from home or take the $1,000 standard deduction?
From 2026-27, if your working from home, car and other work-related expenses add up to less than $1,000, it's better to take the $1,000 standard deduction. Claims above $1,000 replace it and need written evidence. Union fees and professional association fees don't count towards the $1,000: claim them as well.
Can I claim my phone and internet as well as the 70c rate?
No. The fixed rate already includes home and mobile phone and internet. You can claim depreciation on equipment and furniture, such as a desk, chair or laptop.
Can I claim driving to work?
Usually not. Trips between home and your normal workplace are private. You can claim trips between workplaces, to clients or to an alternative workplace, and trips carrying bulky tools you need for work.