All you need to know about Home Office Deductions

All you need to know about Home Office Deductions

What I want to do is take a few minutes and talk about ways to save money and using
proactive creative ways of keeping more of your money.

So the first tip I would like to tell you about is the Home Office deductions hope you have
heard about this may or be you haven’t. But here’s the key point if you operate out of your
home you can save some tax money you’ve got to take advantage of what ATO has allowed
a working from home workers to do and that is to deduct a portion of the expenses we incur
in maintaining our own office.

A very powerful deduction the key point is if you operate or work out of your home you just
got to meet two parameters the first one is you use some space in your home regularly for
work and the second is that space is used exclusively for work.

Now the regular part relatively straight forward the exclusive part is the one that gives us
more trouble because the ATO means exclusive and they mean exclusive that means you
cannot have the baby bed in there and you can have the kids video games you can’t have
anything else in there other than the business needs now the good news is it doesn’t have to
be an entire room don’t have to be able to close the door it can just be part of a room half of
the road but if you don’t have a Home Office deduction you got to go through your house
look at it a little bit differently find a way to rearrange and allocate some part if not a whole
room at least some part of one room you can claim as regular and exclusive use you got to
do this and here’s the reason why if you can do that a portion of the following expenses will
be deductible.

Now you claim the part of your mortgage payments, insurance and even the utilities that you
paid on the house and that can be a very big number even the cleaning lady a portion of all
of those expenses which historically are just personal are now fully deductible based on the
work from home percentage of that room right on your schedule seat this is a giant benefit
even mind this is the money that you already spending anyway thorough the same cheque,
same electric bill, same heating bill and same mortgage statement.
Even if you rent your home or you don’t even have to own the home a portion of your rent
will be deductible.

Some of the common deductions that are a part of home office expenses are:

  • Electricity
  • Gas and heating
  • Office supplies
  • Rental expenses
  • Depreciation of the Office furniture
  • Software subscriptions
  • Computers and accessories.

Do get into contact with us if you have any queries as there are other strategic and custom
solutions suited to you by emailing us at or call us at 1300
659 896.

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