Do you work from home ? What can you claim for a Home office?

Thursday, 26 September 2019   

Do you work from home ? What can you claim for a Home office?

If you're an employee who regularly works from home, you may be able to claim a deduction for expenses relating to that work. These are generally home office running expenses, and phone and internet expenses.

In limited circumstances you may also be able to claim occupancy expenses. One such circumstance is if your home is your principal place of business. If that is the case you should refer to running your business from home. The other situations where you may be entitled to claim occupancy expenses are addressed below.

 Expenses you can claim

Check out the table below for the expenses you can claim as well as the three ways you can work at home, which include:

1. home is your principal place of work and you have a dedicated work area that is unlikely to be suitable for domestic use

2. home is not your principal place of work but you have a dedicated work area – for example a stud.

3. you work at home but you don't have a dedicated work area – for example, you use a room with a dual purpose such as a lounge room.

Home office expenses you can and can't claim

Expenses

Home is principal workplace with dedicated work area

Home not principal workplace but has dedicated work area

You work at home but no dedicated work area

Running expenses

Yes

Yes

No (see note 1)

Work-related phone & internet expenses

Yes

Yes

Yes

Decline in value of a computer (work related portion)

Yes

Yes

Yes

Decline in value of office equipment

Yes

Yes

Yes

Occupancy expenses

Yes

No

No

Note 1: Generally, an employee who works at home and who does not have a dedicated work area will not be entitled to claim running expenses or their claim for running expenses will be minimal. This is due to the fact that they can only claim the additional running expenses incurred as a result of working from home

 Running expenses

If you work from home, you can claim the work-related proportion of your running expenses. These include:

  • home office equipment including computers, printers, telephones and furniture and furnishings. You can claim the  
    • full cost for items up to $300
    • decline in value for items over $300
     
  • heating, cooling and lighting
  • the costs of repairs to your home office equipment, furniture and furnishings
  • cleaning costs
  • other running expenses including computer consumables (for example, printer paper and ink) and stationery.