Home – New Forums Money matters Home Office Expenses 45 cents per hour for Business or Individuals only?

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  • #996507
    anotherkevin
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    Hello All,

    I was going to call the ATO for clarification, however thought I’d throw this question out to the community before wasting an hour on-hold.

    I run a small business (sole trader) from home. I have a home office, mixed use business and personal.

    Researching I’ve found that I maybe able to claim for home office running costs on a 45 cents per hour basis.

    For your home office expenses, you can:
    • use a fixed rate of 45 cents per hour for heating, cooling, lighting and the decline in value of furniture in your home office.

    https://www.ato.gov.au/Individuals/Tax-Return/2016/Tax-return/Deduction-questions-D1-D10/D5-Other-work-related-expenses-2016/

    I’ve only found the information in the ‘Individuals – Deductions’ category on the ATO website, concerning the deductions ‘D5 Other work-related expenses’ section of the Individual’s tax return – which is only for employees.

    Can someone please confirm if this is also available for business? Please include the ATO link.

    Much appreciated.

    Cheers,
    Kevin

    #1207810
    Robert Gerrish
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    Hi Kevin

    Many thanks for joining the forums. One of our fine bean-counting members will answer your question soon I’m sure.

    Robert

    #1207811
    webdever
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    Would like to know as well? As a Pty Ltd?

    #1207812
    Taniabyrnes
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    Interested in this also. This seems to cover utilities, how about the floor space/home mortgage ? Are you able to claim deductions for that for the home office expenses?

    #1207813
    Precise Tax Solutions
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    • Total posts: 172
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    Hi there

    The rules for business deductions are slightly different, and covered here:

    https://www.ato.gov.au/General/Property/Property-used-in-running-a-business/Running-your-business-from-home/

    If claiming mortgage expenses etc. you will want to tread carefully, as claiming these will often mean you will pay Capital Gains Tax on that portion of your home, as it will no longer be covered by the Main Residence CGT exemption.

    Drop me a private message if you would like to discuss further.

    Cheers

    #1232268
    zaydenwood42
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    Hi! I guess now people find this topic more relevant as in this pandemic everyone was and still is working from home as never before. Many companies and businesses bore the home office expenses of the employees. Actually, the resources required while working from home are pretty good in number and require to pay a hefty amount also like ergonomic office chairs and desks, internet charges, webcam and many more such kind of things. I too bought an ergonomic office chair from Fast Office Furniture in Australia recently as it is very painful to work on laptops for long hours while sitting on beds and sofas.

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