Should ABN tradies use fixed rate or actual costs for home office?

ABN home office: fixed rate or actual costs?

Use the method that best matches your records. Fixed-rate is simpler for admin hours; actual costs need stronger bills, floor-area or usage calculations, and apportionment.

Last updated: 7 July 2026. General information for Australian tradies. Not personal tax advice.

When fixed rate helps

The fixed-rate approach can suit tradies who mainly use home for quotes, invoices, ordering materials and bookkeeping. For 2025-26, the ATO fixed-rate method is 70 cents per hour and covers energy, phone, internet, stationery and computer consumables for those hours.

When actual costs help

Actual costs may suit a dedicated office or heavier business use. Keep bills, usage notes, floor-area calculations where relevant, and separate private use from business use.

Avoid double counting

If a cost is covered by the fixed-rate method for your home admin hours, do not claim the same phone, internet, stationery or computer consumable cost again elsewhere.

ATO references

See the ATO pages on fixed-rate working from home expenses and home-based business expenses for sole traders.

Where to enter it in TradieCalc

Use ABN mode and enter the amount under Home office running costs. If using fixed rate, avoid adding the same phone, internet or stationery again.

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