Tax Deductions Working At Home




Working From Home

What Tax deductions can I claim?

Working at home is becoming more and more popular. Even big companies are allowing more and more staff to work at home. Some statistics say that half of working Australians work from home at least 1 day a week. So what can you deduct from your tax for working at home?

The big factor is whether your home is your place of business and you have a designated room or workshop that is used exclusively for your work. If the room you use has a dual purpose ( in other words you work in the living room ) then you can only claim deductions for the amount of hours you use the room for work. If you home is not actually your place of business and you work elsewhere sometimes then you can not claim what is termed the costs of occupancy but can claim other deductions.

Type of Deductions?

Here are some examples of home office tax deductions:

  • Occupancy Costs can include a proportion of rent, mortgage interest, rates, land taxes and house insurance premiums if your home is your place of business and you have a “home office” designated area for work exclusively.
  • Home office equipment including computers, printers and telephones. Currently you can claim the full cost of items under $300. Over $300 you can claim the depreciation. If you are self-employed, you may be able to write-off equipment costing up to $20,000.
  • Work related costs of telephone and internet costs, computer consumables, and stationery.
  • Your business phone calls (including mobiles). If you do not have a business line or business mobile then you need to claim a percentage reflecting work-related usage
  • Office heating, cooling and lighting.
  • Costs of repairs to your home office furniture and fittings.
  • Office cleaning expenses.
Home is your place of business or work and you have a home work area Home is not your place of business but you have a home work area You work at home but you don’t have a home work area
Occupancy expenses
Cost of owning or renting the house
Yes No No
Running expenses
Cost of using a room (such as gas or electricity)
Yes Yes Yes
Work related phone internet costs Yes Yes Yes
Depreciation of office plant and equipment (such as furniture, computers, printers etc) Yes Yes Yes
Depreciation of fitting (light fittings, curtains, carpets,  etc) Yes Yes No

Taxgenius have specialists to help you with home tax deductions and sole trader accounting