Claiming Home Office Expenses

What costs can you deduct?

  • Home office equipment such as computers, printers and telephones.  This only applies for equipment with a cost up to $300 or decline in value for items costing $300 or more.
  • Work related phone calls.  Only if you can prove that you are on a call or have to phone your employer or clients regularly while you are away from the workplace.
  • Heating, cooling and lighting.
  • Costs of repairs to your home office furniture and fittings.
  • Cleaning expenses.

As an employee you are generally not able to claim a deduction for occupancy expenses, which include rent or mortgage interest, council rates and house insurance premiums.

How do you prove your home office expenses?

You must keep records of home office expenses to prove the expense have incurred.  You can prove the expense in the following ways;

  • Receipts or other written evidence of your expenses, including receipts for depreciating assets you have purchased.
  • Diary entries you make to record your small expenses ($10 or less) totalling no more then $200, or expenses you cannot get any kind of evidence for regardless of the amount.
  • Itemised phone accounts from which you can identify work related calls or diary entries
  • A diary you have created to work out how much you used your equipment, home office and phone for business purposes.
Check the status of your tax return with the ATO