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Tax benefits from working at home

As the world is undergoing massive changes, many people are now using their dining room as an office. Now if this is you, take note, as we’ve made a possible list of things that are literally under your nose and indeed may be tax deductible.

Consider claiming:

  • Utility bills (Percentage that your new home office uses)
  • Cleaning costs for your work area
  • Repairs and depreciation of furniture, equipment and computers that you’re using for work
  • Computer supplies (like printer ink) and stationery 
  • Phone and internet expenses (Percentage that your new home office uses)

Cannot claim:

  • Rent and interest from your mortgage repayments is possible to claim, but not if you work from home as an employee (and you have an office in the city), because in theory there is no additional cost to you from working at home. 

Claiming things can get quite complicated if you have multiple people living and working in the same house using the working space and utilities. In order to claim, you need to be able to provide the ATO with records of the correct amounts. You can use two methods for this: 

  • Diary and running expenses
    Recording the time spent working from home and addressing how that compares to the rest of the hours used in that space. This method is often more accurate and you might be able to get a larger claim amount, but it involves more paperwork and calculations.
  • ATO rate per-hour
    Use the ATO’s rate of 52 cents per hour for your time spent working at home. It considers heating, cooling, lighting and furniture depreciation. You still need to keep track of your working hours with this method. If you need to be emailed a copy, please contact your local ITP office.

The world is definitely changing and there is certainly no 'one size fits all' solution. But no matter how the next chapter unfolds, take confidence that ITP Queensland is here. Contact us today to find out more.