Can I Claim Home Office Expenses in Australia? (2026)

Who this page is for: Employees and small business owners trying to work out what home office costs may be deductible.

What this page answers: Add a short-form answer page for working-from-home queries without replacing the longer rules pages.

Parent support page: Record Keeping for Tax Deductions in Australia (2026 Guide)

Scope note: Home office claims can change depending on whether you are an employee or running a business from home, and which ATO method you use.

Last reviewed: 25 March 2026

Trust note: This answer page is educational only and checked against official ATO guidance or closely related ATO topic pages.

Direct answer

You may be able to claim home office expenses in Australia if you incur extra costs from working at home and keep the right records. The exact costs you can claim depend on whether you use the ATO fixed rate method or actual cost method, and business-from-home situations can be different again.

Most employees should be careful not to treat rent, mortgage or occupancy costs as an automatic home-office claim.

You usually need to have paid the cost yourself.
The expense should relate directly to earning income or running the business.
Only the work-related or business-use share is usually claimable for mixed-use items.
Records matter just as much as the expense itself.

Related live page: How to Claim Tax Deductions in Australia (2026 Guide).

Short explanation

For many employees, the main decision is whether the fixed rate or actual cost method fits better. The fixed rate method includes certain running costs like internet, phone, energy and stationery, while the actual cost method requires you to work out the actual additional expense you incurred.

Running a business from home is a different question again, because the home-based business rules can be wider than the normal employee position. That is why this page should be read as a starting point, not as a blanket permission to claim every household bill.

Key rules

Choose the method that actually applies to your situation before working out the claim.
Do not separately claim expenses already covered by the fixed rate method.
Keep records of hours worked from home and the costs you are claiming.
Home-based business rules can differ from normal employee working-from-home rules.
Occupancy costs such as rent or mortgage interest are not a standard employee claim.

Common mistakes

Double counting phone or internet costs on top of the fixed rate method.
Assuming every person who works from home can claim rent or mortgage costs.
Using a rough estimate without keeping any record of hours or bills.
Mixing up employee work-from-home rules with home-based business rules.

Frequently asked questions

Can I claim rent or mortgage interest?

Sometimes the answer may differ for home-based businesses, but most employee claims are much narrower and need careful checking.

Can I claim phone and internet separately?

Not if those costs are already covered by the fixed rate method you are using.

Do I need a separate room?

That can depend on the method and the type of expense, so do not assume one simple rule covers every home-office claim.

Internal links and next steps

Use these if you want a related occupation page, a broader support guide or a cluster page.

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More related guides

If you want a closer occupation match or a narrower claim question, these are the best next steps.

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Review note, sources and disclaimer

Reviewed by: Australia Tax Deductions editorial team

Last reviewed: 25 March 2026

How this page is framed: This page is written in plain English, anchored to official ATO guidance and designed as educational information only.

Methodology: See the Editorial Policy and Review Methodology pages for how the site handles source checking and updates.

Primary references

General educational information only. Tax outcomes depend on your circumstances, records, business structure and the current ATO rules. Check the latest official guidance or speak with a registered tax professional before acting on any deduction claim.