Deductible Home Office Expenses

Claiming running expenses and occupancy expenses depends on whether or not a taxpayer’s home is their place of business and if they have an area set aside exclusively for business activities.

If the taxpayer’s home is their main place of business and an area has been exclusively set aside for business activities, they may be able to claim both running and occupancy expenses.

Where a room of a home is used for business activities but the taxpayer has another permanent assigned office available elsewhere, the taxpayer may only be able to claim running expenses.

It is important to keep a diary or similar record keeping document to record any running and/or occupancy expenses being claimed for about a four week period each income year for substantiation.

Alternatively, the taxpayer may choose to claim certain expenses using the fixed rate provided by the Tax Office for that particular income year.

The Tax Office has provided a table to determine the type of home office expenses that may be claimed based on how the business is operated from home. Click here for the table.

To assist in determining your entitlement to occupancy expenses and estimated deductions, the Tax Office has made available a calculator. Click here to access the calculator.

For more information, click here.