What a day working from home costs
| Item | Energy | Cost |
|---|---|---|
| Laptop, 30 W for 8 hours | 0.24 kWh | 8c |
| Monitor, 25 W for 8 hours | 0.20 kWh | 7c |
| LED lights, 20 W for 4 hours | 0.08 kWh | 3c |
| Kettle, a few cups | 0.22 kWh | 7c |
| Small reverse cycle unit, 8 hours | 6.0 kWh | 199c |
| Or a fan heater on high, 8 hours | 19.2 kWh | 636c |
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
Heat or cool one room
Close the door and use the smallest unit that keeps you comfortable.
Use a laptop
A laptop draws a fraction of a desktop computer.
Switch the desk off at night
Monitors, printers and speakers left on standby add up. See standby power.
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.