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Working from home? Don’t miss the tax deductions you are entitled to!

According to Australian Communications and Media Authority almost half (49%) of employed Australian use internet to work away from the office outside of standard hours or they are teleworkers who work away from the office for a part or full day.

Practice of working from home is clearly on the rise. More and more businesses are now encouraging their employees to work from home to improve employee well-being and enhance productivity. Latest Telecommuting Statistics published by Global Workplace Analytics (GlobalWorkplaceAnalytics.com) suggest that a typical business embracing working from home could save up to US$11,000 per employee per year.

If you are the one working form home regularly, the benefits are eminent. You will not only save cost of travel between home and work (which is normally not tax deductible), but also be entitled to a variety of home office expense deductions.

Deductions you can claim

  • Cost related to computer, phone and other electronic devices
  • A portion of heating, cooling and lighting cost
  • A Portion of cost related to furniture and fittings
  • Cleaning expenses
  • Decline in value (depreciation) of curtains, carpets and light fittings (this is allowed only if you meet certain conditions)

What you cannot normally claim

  • Rental expense
  • Mortgage interest, insurance and rates

It is important to correctly work out the amount you can claim and keep adequate records to support your claim.

This article is intended to provide general information. You may seek further advice from a registered tax agent.