Home Office | Online Tax 2024

Yes, you sure can. As a self-employed person, you can certainly claim home office expenses.works:

Here are the nuts and bolts that you need to know about:

1. Home Office Deduction:

   • If you use part of your home exclusively for business purposes, you can claim as a tax deduction a portion of your home office expenses.
   • The area must be genuinely used for work-related activities, such as administrative tasks, client meetings, or product development.
   • Keep in mind that the space should not be dual-purpose (e.g., a dining room doubling as an office).

2. Expenses You Can Claim:

   • Utilities: A portion of your gas, electricity, and water bills related to your home office.
   • Internet and Phone: If you use these services for business purposes, you can claim a percentage as a tax deduction..
   • Depreciation: For furniture, equipment, and fixtures used in your home office.
   • Cleaning Costs: If you hire a cleaner to maintain the office area.
   • Rent or Mortgage Interest: If you’re a homeowner, you can claim a portion of your mortgage interest. (Strict Rules apply to this one and there could be Capital Gains implications).

3. Calculating the Deduction:

   • You’ll need to determine the percentage of your home used for business. Measure the area and divide it by the total floor space.
   • Apply this percentage to the relevant expenses.

4. Record Keeping:

   • Keep detailed records, including receipts, invoices, and evidence of your home office setup.
   • Maintain a logbook to track the hours you spend working from home.

5. Simplified Method:

   • Starting from the 2020-2021 financial year, there’s a simplified method for calculating home office expenses.
   • You can currently claim a flat rate of 67 cents per hour (2024) for each hour you work from home. This covers ALLexpenses (including utilities and depreciation).
   • Careful not to DOUBLE DIP.  By claiming the "cents rate" you cannot also claim Internet expenses, Home and mobile phone expenses, Electricity and gas used for heating, cooling and lighting, Stationery and computer consumables (printer ink, paper etc.)
   • Keep a record of the hours worked.

Remember, always consult a Gotax tax professional when in doubt. And for initial guidance you can ask the Gotax Ai Q & Q system for answers.

I hope this helps clarify the process. If you have any more questions, feel free to ask! 

Get your tax done at www.gotax.com.au.  Australia's easiest online tax preparation system.