Home Office Expenses

Home office expenses

If you’ are one of the many Australians who regularly works from home, there may be deductions for work-related expenses you can claim. These expenses will generally relate to the day-to-day operations of running your home office.

Although, if your home is also your primary place of work, you will need to instead refer to running your business from home.

Expenses you can claim

Check out the table below for the expenses you can claim as well as the three ways you can work at home, which include:

  • home is your principal place of work and you have a dedicated work area that is unlikely to be suitable for domestic use
  • home is not your principal place of work but you have a dedicated work area – for example a study
  • you work at home but you don’t have a dedicated work area – for example, you use a room with a dual purpose such as a lounge room.

Home office expenses you can and can’t claim

Home is your principal place of work and you have a dedicated work area
Home is not your principal place of work but you have a dedicated work area
You work at home but you don’t have a dedicated work area
Running expenses – cost of using a room (eg gas or electricity) Yes No No
Work-related phone and internet costs Yes Yes No
Decline in value of a computer (work related portion) Yes Yes No
Decline in value of office equipment (eg tables and chairs) Yes Yes No
Occupancy expenses – cost of owning or renting the house (eg mortgage interest or rental payments) Yes No
Table Sourced from The ATO.

Running expenses

To be eligible to claim work-related home office expenses, you will need to have a dedicated work area, like a study where your duties are performed. Keep in mind, it is the work-related portion that is claimable, not your private or personal use. Home office expenses include but are not limited to:

  • Computer or office equipment
  • Electricity and gas usage (heating, cooling, lighting)
  • The costs of repairs to your home office equipment and furniture
  • The cost of owning or renting the house (mortgage interest or rental payments)