Hey @farugeAus,
Solar can brighten your power bills, but it also changes how deductions are worked out. ☀️
The key thing to keep in mind is that your deduction is limited to what you actually pay out of pocket, and then only the work‑related portion of that amount.
Using your hypothetical example:
- Before solar:
- quarterly electricity bill: $1,000
- work‑related portion: 50%
- deduction claimed: $500
- After solar:
- quarterly electricity bill you actually pay: $500
- you can only claim the work‑related portion of that $500
- if 50% is still a reasonable work‑related percentage the deduction would be $250.
You can't claim a deduction for the cost of installing the solar panels and battery themselves. These are considered personal expenses, not additional running expenses incurred as a result of working from home.
You'll need to keep records that show how you calculated the work-related portion of your electricity expense. Since you're using power usage meters to track consumption, that evidence will likely support your claim.
The actual cost method lets you claim the work-related portion of all your running expenses, provided you can demonstrate the calculation is reasonable.
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