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Edited version of private advice
Authorisation Number: 1051996201152
Date of advice: 9 August 2022
Ruling
Subject: Home office expenses
Question
Can you claim a deduction for running and occupancy expenses in relation to your home office space?
Answer
Yes
Taxation Ruling TR 93/30 Income tax: deductions for home office expenses (TR 93/30), discusses the deductibility of occupancy expenses, such as rent, and methods for apportioning those expenses. Where the taxpayer's circumstances are such that there is no alternative place to work and it is necessary to work from home, and the area of the home is used exclusively or almost exclusively for income producing purposes, a proportion of running costs and occupancy costs can be claimed as a deduction.
Having considered your circumstances, the Commissioner accepts that you are entitled to a deduction for the running and occupancy expenses under section 8-1 of the Income Tax Assessment Act 1997.
You will need to apportion the running and occupancy expenses on the basis of the floor area and time in which the space was used to produce assessable income, taking into days/time in which the space was not being used for work purposes (e.g. sick leave, annual leave, weekends, etc).
Further information on working from home expenses can be found by searching QC 31977 on ato.gov.au
This ruling applies for the following period:
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You have been employed as an engineer since YYYY.
Your employer's office was located in a central business district (CBD).
The lease for the office expired in MMYYYY.
A new lease was entered in MMYYYY.
COVID-19 restrictions in the CBD meant that you started working from home in MMYYYY.
The lease at the office was exited early on DDMMYYYY.
Your employer has not provided a premises for staff to work from since this date.
You have rented a one-bedroom unit in the income years ended 20XX-XX and 20XX-XX.
You have set aside a designated area for your home office by floor area. This designated floor area is not used for any other purpose.
Relevant legislative provisions
Income tax Assessment Act 1997 Section 8-1
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