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Edited version of private advice
Authorisation Number: 1052371536686
Date of advice: 14 March 2025
Ruling
Subject: Work related expenses
Question 1
Am I entitled to claim a deduction for home office occupancy expenses?
Answer 1
Yes.
Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for a loss or outgoing to the extent that it is incurred in gaining or producing assessable income and is not of a capital, private or domestic nature, or relate to the earning of exempt income.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
Your residence is located at XXXX.
You are employed as a professional.
Your employer permanently closed its physical office.
No alternative workplace is provided.
You are required to perform your employment duties from home full-time under the condition your employer continues to supervise the work.
The remote working arrangements will continue in the current form.
Your work duties include:
• List of duties provided.
To perform your work duties effectively, you have set up a dedicated room in your rented home as a home office.
The room is used exclusively for business purposes.
The lease agreement indicates the property is jointly leased; however, you solely paid all outgoing rent.
The total area of your home is X square metres per your calculations from your home floor plan.
The total area used for the office is X square metres (X percent of the total floor area) per your calculations.
Your employer pays you a home office allowance used exclusively for expenses incurred for utilities, office equipment and other necessary resources to perform remote work.
The allowance does not offset rent costs.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1