Skip to main content

2026-27 rates are live. DMO, VDO and solar feed-in tariffs updated for July 2026. See what changed

Household bills

How Much Working From Home Adds to Your Electricity Bill

A home office costs less to run than most people think, until the heater goes on. Here is the real daily cost and how the ATO fixed rate works.

Checked against regulator sources, October 2026

What a day working from home costs

Electricity for one eight-hour working day, Ausgrid reference rate
ItemEnergyCost
Laptop, 30 W for 8 hours0.24 kWh8c
Monitor, 25 W for 8 hours0.20 kWh7c
LED lights, 20 W for 4 hours0.08 kWh3c
Kettle, a few cups0.22 kWh7c
Small reverse cycle unit, 8 hours6.0 kWh199c
Or a fan heater on high, 8 hours19.2 kWh636c
Typical power draws. Your equipment and hours will differ.

The equipment is cheap to run. Heating and cooling are not. Over a working year of about 230 days, the difference between a small air conditioner and a fan heater in the home office is about $1,006 on the Ausgrid reference rate. See our air conditioner and heater calculators.

Claiming working from home costs

The ATO's fixed rate method lets you claim a set amount for each hour you work from home: 70 cents an hour for 2024-25 and 2025-26, and 67 cents for 2022-23 and 2023-24. The rate covers running costs such as electricity and gas, so you cannot claim your power bill separately as well. You need a record of the hours you actually worked from home. The ATO's worked example: 843 hours at 70 cents is a $590 deduction.

Check with the ATO or your tax agent

Tax rules have conditions and change over time. Use the ATO's current guidance or a registered tax agent for your own return.

Keeping home office costs down

  1. Heat or cool one room

    Close the door and use the smallest unit that keeps you comfortable.

  2. Use a laptop

    A laptop draws a fraction of a desktop computer.

  3. Switch the desk off at night

    Monitors, printers and speakers left on standby add up. See standby power.

  4. Use daytime power

    With solar or a free midday plan, run laundry and the dishwasher during your working day.

Questions about working from home costs

A laptop, monitor, lights and a few cups of tea use under 1 kWh a day, about 25c on the Ausgrid reference rate. Heating or cooling the room can add several times that.

Under the ATO fixed rate method you claim 70 cents an hour for 2024-25 and 2025-26, which covers running costs such as electricity. You cannot claim the power bill separately on top. Keep a record of your hours.

A reverse cycle air conditioner. A small unit drawing 0.75 kW costs about 25c an hour on the Ausgrid reference rate, against 80c for a 2,400 W fan heater.

Sources

Every rate on this page comes from the regulator or the regulated retailer. Last checked October 2026. Prices include GST unless we say otherwise.