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Zava Design
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Okay, this I can give some advice on direct from an ATO advisor.

Which, I have to add, is one of the great free services the ATO offer: You can ask for an ATO advisor to visit your home/small business location, and they can give advice to you, and nothing that they see or you say to them can be used by the ATO.

Anyway, when one of their advisors came to visit me last year, I asked him about the whole rent deduction thing, thinking it could be for a room I used as an office only. However he said I should claim more, to include my daytime (“work hours”) use of the kitchen & bathroom too.

So basically it seems that if you’re being reasonable, the ATO will not be anal about this area of your claims. I figure they have more things to worry about than a small business owner claiming 30% rather than 20% of their rent.

But as I said, take advantage of the free ATO service and ask them yourself.

Cheers.