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Re: Home office tax deductions

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spr
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Hi,

I work from home as a subcontractor for an overseas company (in addition to a fulltime Australian office job).
Can I claim usual home office tax deductions (i.e. part of my rent) in this case, and if so - what kind of supporting paperwork may I need to provide to ATO ?

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Taxicorn

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So are you saying that you do not have any 'office' in Australia for your contracting work?

 

If so then you may be able to claim home occupency expenses based on floor area of your office eg.

 

House area = 100m2

Office area = 5m2

Claim = 5% of occupancy expenses (rent, mortgage interest, municipal and water rates, land taxes and house insurance premiums.)

 

Aslo, running expenses relating to the use of facilities within the home. These include electricity charges for heating/cooling, lighting, cleaning costs, depreciation, leasing charges and the cost of repairs on items of furniture and furnishings in the office. These would be claimed under Home Office expenses at 45 cents per hour that you spend working.

See Tax Ruling TR 93/30 and also MVF helpful post here

 

 

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Best answer

Taxicorn

Replies 3

So are you saying that you do not have any 'office' in Australia for your contracting work?

 

If so then you may be able to claim home occupency expenses based on floor area of your office eg.

 

House area = 100m2

Office area = 5m2

Claim = 5% of occupancy expenses (rent, mortgage interest, municipal and water rates, land taxes and house insurance premiums.)

 

Aslo, running expenses relating to the use of facilities within the home. These include electricity charges for heating/cooling, lighting, cleaning costs, depreciation, leasing charges and the cost of repairs on items of furniture and furnishings in the office. These would be claimed under Home Office expenses at 45 cents per hour that you spend working.

See Tax Ruling TR 93/30 and also MVF helpful post here

 

 

spr
Initiate

Replies 2

Thanks,

 

Yes, I'm familiar with these home office deductions rules.

What I wanted to clarify is whether they are limited to work done for Australian customers/employers (assume they are not).

 

Cheers,

Eugene

Taxicorn

Replies 0

They are not restricted.

 

Most companies that people work for would be foreigned owned..Smiley Happy

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Community Support

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Hi @spr,

 

Thanks for getting in touch!

 

If you're a sole trader and you're running a business from your home, you can claim a tax deduction on the business proportion of owing, maintaining and using your home for business purposes. You can use out Home office expenses calculator to help you work it out.

 

When claiming any deduction, you need to keep relevant records to show how you calculated your claim. These can include receipts, invoices and other contracts. You can find information on records you need to keep on our website.

 

If you have further questions, you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

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