WFH deduction calculator: 70c fixed rate vs the $1,000 standard deduction
Work out your claim
1,094 hours × 70c = $766 under the fixed rate method
Itemised work expenses: $766. Standard deduction: $1,000.
The $1,000 standard deduction is higher, by $234. You would need about 1,429 home hours for itemising to pass it.
An estimate only. A fixed rate claim must use the actual hours you recorded, not a typical week. The standard deduction needs labour income and can’t be more than it. Cents are dropped, the way the ATO does it.
How the calculator works
It multiplies your hours by the ATO’s fixed rate of 70 cents an hour, which applies from 1 July 2024, and drops the cents. For 2026–27 it adds the other work expenses you enter and compares the total with the $1,000 standard deduction.
The break-even is (1,000 − your other work expenses) ÷ 0.70. With $0 of other expenses that’s about 1,429 hours. With $300 of other expenses it’s 1,000 hours.
Break-even by days at home
Assuming 7.6 hours a day over 48 weeks and no other work expenses:
| Days at home a week | Hours a year | Fixed rate (70c) | Beats $1,000? |
|---|---|---|---|
| 1 | 365 | $255 | No |
| 2 | 730 | $510 | No |
| 3 | 1,094 | $766 | No |
| 4 | 1,459 | $1,021 | Yes, just |
| 5 | 1,824 | $1,276 | Yes |
Why the result is only an estimate
A fixed rate claim has to use the actual hours you recorded during the year, not a typical week. The ATO doesn’t accept estimates for the fixed rate method. Use this calculator to decide whether keeping records is worth it for you. Then use your records to make the claim.
The standard deduction applies only to labour income, such as salary and wages, and can’t be more than that income. Some deductions, including union and professional fees, donations and the cost of managing your tax affairs, are claimed on top of either option. Read the full explanation in $1,000 standard deduction vs the WFH fixed rate.
Privacy
The calculator runs entirely in your browser. Nothing you type is sent anywhere.
Questions
How do I calculate my work from home deduction?
Under the fixed rate method, multiply the actual hours you worked from home in the year by 70 cents (from 1 July 2024) and drop the cents. 1,000 hours gives a $700 claim. You need a record of those hours kept during the year.
How many hours do I need to work from home to beat the $1,000 deduction?
About 1,429 hours if you have no other work expenses to itemise, which is roughly 30 hours a week for 48 weeks. Every dollar of other itemised work expenses lowers the break-even by about 1.4 hours.
Does the $1,000 standard deduction apply to my 2025–26 return?
No. It starts from the 2026–27 income year, so it first appears on returns lodged from July 2027.
Sources
This is general information, not tax advice. Check your own situation with the ATO or a registered tax agent. WFH Diary is not affiliated with or endorsed by the Australian Taxation Office.