ATO

The ATO has updated its working from home deduction guidelines for the 2026 tax year. Sydney taxpayers need to understand the new rules to maximise their refunds.

NSW workers who spent months logging hours at their kitchen tables and spare bedrooms can now claim a tax deduction for those working from home expenses.

You cannot claim expenses of a private or capital nature, such as the cost of purchasing the property itself or improvements that add a new feature.

From the 2026-27 income year, a new $1,000 standard work-related deduction applies. This is an optional flat deduction for eligible employees who incur work-related expenses.

You must lodge a tax return with the Australian Taxation Office if any of the following applied during the 2025-26 income year, which ran from 1 July 2025.

Freelancers in Sydney claim more than $2.8 billion in work-related expenses each year according to Australian Taxation Office data. A compliant home.