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Work-from-home and car deductions: how the ATO methods work
Working from home and car use are two of the most common work-related claims. Here's how the ATO's methods work, and what changes from 2026-27, with links to check every figure.
Working from home: the fixed rate method
The ATO's fixed rate method page sets a rate per hour worked from home: 70 cents per hour for 2024-25 and 2025-26. It covers energy, internet, phone, and stationery and computer consumables, so you can't claim those separately as well. You need a record of the actual hours you worked from home (an estimate isn't enough) and at least one record for each kind of expense the rate covers. You can separately claim the decline in value of things like a desk, chair or computer.
When we checked (Nov 2026), the ATO hadn't published a 2026-27 rate on that page.
Car: cents per kilometre
The cents per kilometre method lets you claim a set rate per work kilometre, up to 5,000 km per car. The rate is 88 cents per km for 2025-26 and 91 cents per km for 2026-27, as listed when we checked. Normal travel between home and work generally isn't claimable.
New from 2026-27: the $1,000 standard deduction
From the 2026-27 income year, eligible employees get a standard deduction for work-related expenses of up to $1,000, applied automatically. It's reduced dollar for dollar by certain work-related expenses you claim, including working-from-home and car expenses. It doesn't apply to the 2025-26 tax return, and it doesn't apply if you only earn business income. So the practical question becomes: are your itemised claims bigger than the standard deduction?
General information only, not tax advice. Rules and rates change, so check the linked ato.gov.au page for the current version, or ask a registered tax agent about your situation.
Want it done for you? WFH & Car Deduction Estimator (2025-26 / 2026-27)
An offline estimator with the ATO rates built in: the WFH fixed rate, cents per km, and a comparison of itemising vs the $1,000 standard deduction with a rough tax saving. Separate mode for sole traders.
- WFH fixed rate (70c pre-filled and editable for 2026-27)
- Cents per km: 88c for 2025-26, 91c for 2026-27, 5,000 km cap
- Itemise vs standard deduction comparison
- Tells you which records to keep for each method
US$7.99 one-time on Whop. Instant download.
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General information only, not financial, tax or legal advice. Check the official pages linked above, or ask a registered tax agent, before you rely on anything here. Last checked 16 Nov 2026.