Tax Deductions for Remote Workers in Australia (2026 Guide)

Introduction

Remote work is now a permanent part of working life in Australia. Millions of Australians work from home either full-time or part-time, and with rising living costs, understanding what you can legally claim as tax deductions has never been more important.

From home office expenses and internet bills to software subscriptions and work-related equipment, remote workers may be entitled to significant tax deductions — if they follow the Australian Taxation Office (ATO) rules correctly.

In this 2026 guide, we explain tax deductions for remote workers in Australia, including common claims, record-keeping tips, and mistakes to avoid. If you work remotely using digital tools, you may also find this helpful: Best Remote Work Tools for Australians .

Quick Overview: What Remote Workers Can Claim (2026)

Expense Type	Claimable?	Examples
Home office running costs	Yes	Electricity, heating, cooling
Internet & phone	Yes (work portion)	NBN, mobile data
Equipment	Yes	Laptop, monitor, headset
Rent or mortgage	Usually No	Special conditions apply

ATO Methods for Claiming Work From Home Expenses

The ATO provides different methods for claiming work-from-home expenses. The most commonly used approach is the fixed rate method, which allows you to claim a set rate per hour worked from home.

Common methods include:

• Fixed rate method: Covers electricity, internet, phone, and stationery
• Actual cost method: Claim the work-related portion of actual expenses

Each method has specific record-keeping requirements, so it’s important to choose the one that best suits your situation.

For up-to-date details, always refer to the official ATO guidance: Australian Taxation Office (ATO).

Common Tax Deductions for Remote Workers

1) Home Office Running Costs

Remote workers can claim expenses related to running a home office, including electricity and gas for lighting, heating, and cooling. You must keep records of hours worked from home.

2) Internet and Phone Expenses

If you use your internet or phone for work, you can claim the work-related portion. This often requires a reasonable usage calculation rather than claiming the full bill.

3) Work-Related Equipment

Items such as laptops, monitors, keyboards, and noise-cancelling headsets may be deductible if used for work. Higher-cost items may need to be depreciated over time.

4) Software & Subscriptions

Remote workers can claim software subscriptions and digital tools used for work, including productivity tools, cloud services, and some AI tools.

What You Cannot Claim

Understanding what cannot be claimed is just as important:

• Rent or mortgage payments (in most cases)
• General household expenses unrelated to work
• Costs reimbursed by your employer

Claiming incorrect expenses can trigger audits or penalties, so accuracy matters.

Record-Keeping Tips for Remote Workers

Good records are essential when claiming deductions. Australians should:

• Keep receipts and invoices
• Track hours worked from home
• Store records digitally for easy access

For guidance on workplace arrangements and rights, Australians can also refer to: Fair Work Ombudsman.

FAQ: Tax Deductions for Remote Workers (Schema)

Conclusion: Claiming Tax Deductions as a Remote Worker in 2026

Remote work offers flexibility, but it also brings tax responsibilities. By understanding ATO rules and keeping good records, Australian remote workers can legally reduce their tax bill while staying compliant.

If your situation is complex, consider speaking with a registered tax agent to ensure you’re claiming correctly.

👉 Learn How to Maximise Your Remote Work Tax Deductions

Suggested Internal Links:

• Best Remote Work Tools for Australians
• Best VPNs for Digital Nomads in Australia