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Changes in the Home Office Running Costs Deduction Rate

Changes in the Home Office Running Costs Deduction Rate

For employees who are conducting a portion of their work from a home office, the ATO has increased the rate of home office expenses related deductions. From the previous rate of 34 cents an hour, the fixed rate has been increased by more than 32 percent to 45 cents an hour.

The employee can only claim the work-related part of the home office expenses and must be able to keep records of his time spent in using the home office for business purposes.

Some of the expenses that may entitle an employee to claim work-related deductions are:

  • Home office equipment
  • Home office equipment repairs
  • Work-related phone calls
  • Home office furniture repairs
  • Home office cleaning expenses
  • Heating, cooling and  lighting expenses

It is also important to note that your home office will not be considered a place of business if your employer has an office in the city or town where you are situated, even if you work outside the normal business hours.

For more information on the Home Office Expenses Deductions, please contact us.

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