If your home is your main place of business, you may be able to claim the business portion of some expenses.

You may be able to calculate your home-based business running expenses using:

  • a fixed rate of 52 cents an hour for each hour you operate your business from home
    • This covers heating, cooling, lighting, cleaning and the depreciation of furniture and furnishings.
    • You will need to separately calculate phone and internet expenses, consumables and certain depreciation expenses.
  • the temporary working from home shortcut method of 80 cents an hour
    • This can be used by individuals running home-based businesses from 1 March 2020 until 30 September 2020.
    • This covers all the expenses normally included under the 52 cents rate and all additional deductible running expenses.
  • any other reasonable method.

You may also be able to claim occupancy expenses, like rent, in certain circumstances. Exclude your private living costs and keep records to show how you calculated your expenses.

You can’t claim the same expenses two different ways. The temporary working from home shortcut method is all-inclusive.

For example, you can’t claim the full cost of purchasing a photocopier using instant asset write-off and also claim with the home shortcut method.

If you need any assistance with business restructuring or any other accounting and taxation work, give our team at SPS Business Consultants a call on ☎️ (03) 9904 9261.

Source – https://www.ato.gov.au/Newsroom/smallbusiness/General/Running-your-business-from-home-/