Save Money Working From Home in Australia 2026: Tax Deductions and Smart Spending

The Australian Taxation Office provides two methods for calculating work-from-home deductions. Choosing the right method for your situation can make a difference of hundreds or even thousands of dollars.

Method 1: The Fixed Rate Method (67 cents per hour)

The revised fixed rate, applicable from 1 July 2022 onwards, allows you to claim 67 cents for every hour you work from home. This rate covers:

• Electricity and gas for your home office
• Internet costs (the work-related portion)
• Mobile and home phone costs
• Computer consumables (printer ink, paper)
• Stationery

What it does not cover:

• Office furniture and equipment (claimed separately)
• Phone and internet plan costs above the rate's bundled allowance (you must use the 67c rate for these, not claim separately unless using the actual method)

What you still claim separately even under the fixed rate: the work-use proportion of the cost of depreciating assets - laptop, monitor, desk, chair - can be claimed via depreciation in addition to the 67c/hr rate.

Record-keeping required: You must keep a record of the total hours worked from home throughout the income year. A diary, calendar, or timesheet noting WFH hours is sufficient. From 1 March 2023 onwards, the ATO requires full-year records - not just a representative four-week sample.

Method 2: The Actual Cost Method

The actual cost method allows you to claim the work-related proportion of actual expenses - electricity, internet, phone, and equipment. This requires more record-keeping but can produce a larger deduction if:

• Your home internet and phone bills are high
• You run significant heating or cooling in a dedicated home office
• You have a large, clearly defined workspace

To calculate the work-related proportion:

• Electricity/gas: Floor area of your workspace ÷ total home floor area × hours used × energy rate per kWh
• Internet: Time-based split (hours used for work ÷ total hours used)
• Phone: Itemised billing showing work calls, or a percentage based on logged usage

For most employees working standard hours from home two to three days a week, the fixed rate method is simpler and produces comparable results. For freelancers and remote workers who work from home full-time in a dedicated room, the actual method is often better.

You CAN claim:

• Electricity and gas used for heating/cooling and lighting your workspace (actual method)
• Internet plan costs - work proportion
• Mobile and home phone - work call proportion
• Purchasing a desk, chair, monitor, keyboard, printer (depreciated or immediately if under $300)
• Laptop or computer - work proportion of purchase cost
• Stationery and consumables
• Online subscriptions used for work (project management tools, cloud storage, software)

You CANNOT claim:

• Rent or mortgage interest (unless you're running a genuine home-based business with a dedicated commercial-use space - this triggers CGT implications on that portion of your home)
• Furniture for spaces that aren't your workspace
• Coffee, snacks, or meals eaten at home
• Streaming entertainment subscriptions, even if used during lunch
• The full cost of a shared device that's also used personally

Working from home puts meaningful demands on your internet connection - video calls, large file uploads/downloads, cloud storage sync, and potentially VPN usage. If you're on an older NBN plan, you may be paying for something that's actively limiting your productivity.

The most cost-effective approach in 2026:

• NBN 50 (Standard) is sufficient for solo workers doing mostly video calls and document work
• NBN 100 (Standard Plus) is the sweet spot for households where multiple people are working or studying simultaneously
• NBN 250/1000 (Superfast/Ultrafast) is generally overkill for standard office work - the cost premium is hard to justify unless you regularly transfer very large files

Price comparison tools like WhistleOut and Finder list current plan pricing by provider. The gap between the cheapest and most expensive NBN 100 plans from comparable providers is often $20–$30/month - and you can negotiate with your provider or switch in 30 days.

WFH adds an estimated $500–$1,200/year to household energy bills, driven primarily by:

• Heating and cooling your workspace during business hours
• Running a second monitor, computer, and peripherals throughout the day
• Additional coffee/tea preparation and kitchen use

Practical minimisers:

• A small oil-column heater or desk fan is significantly cheaper to run than whole-house heating/cooling for a single-person home office
• Power boards with individual switches eliminate phantom load from devices on standby
• Most WFH setups don't need both a laptop and a desktop - choose one and use the other only when needed
• Solar panels, if you're a homeowner, can offset the daytime energy use substantially

For some workers, the maths occasionally favours a coworking space over home:

• Day passes at coworking spaces in most Australian CBD fringe areas run $35–$65
• If working from home adds $15–$20 in energy costs, the net cost of a coworking day is $15–$50 after subtracting home energy saving
• The productivity premium and social connection can make this worthwhile once or twice a week

If you use coworking spaces for work, the cost is fully deductible as a work-related expense.

Remote workers and freelancers typically run a stack of digital tools - hosting, automation, productivity software, VPN. These add up quickly, but memberships that discount multiple tools simultaneously are worth considering.

Roopon is an Australian membership rewards club specifically relevant for WFH workers and freelancers. The partner network includes:

• Bluehost: Web hosting - relevant for freelancers, solopreneurs, and remote workers maintaining a professional online presence
• Make.com: Workflow automation - powerful for remote workers managing multiple tasks, automating client communications, or running small online businesses
• NordVPN: Online security - essential for remote workers accessing company systems or personal financial accounts on home networks
• Eurotech: Car servicing - useful if your WFH situation means your car is used heavily for client visits

Membership starts at $19.99/month (BASIC). PREMIUM ($39.99/mo), ELITE ($59.99/mo), and ULTIMATE ($79.99/mo) tiers extend the benefits. All cancel anytime. Every membership includes FREE prize-draw entries per your plan. Current prizes: /giveaways. Winner history is at roopon.com/winners. Extra packages exist for specific campaigns.