Deduction for home office expenses

The hourly rate determined by the ATO for deducting home office expenses has been increased from 34c to 45c per hour for individual taxpayers, effective 1 July 2014.

According to PS LA 2001/6 (para 2 and 12), individual taxpayers who claim deductions for work or business related home office running expenses comprising electricity, gas and decline in value of office furniture may claim either a deduction for the actual expenses incurred or a deduction calculated at the rate of 45 cents per hour (which was increased from 34 cents per hour on 1 July 2014). Taxpayers should be reminded that a deduction would be allowable only where additional running costs are incurred because of their income producing activities.

This article is provided as general information only and does not consider your specific situation, objectives or needs. It does not represent accounting advice upon which any person may act. Implementation and suitability requires a detailed analysis of your specific circumstances.