Private ruling: Work related expenses
Date of advice: 14 March 2025
Published: 19 May 2025
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Am I entitled to claim a deduction for home office occupancy expenses? | A1: Yes. Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for a loss or outgoing to the extent that it is incurred in gaining or producing assessable income and is not of a capital, private or domestic nature, or relate to the earning of exempt income.

Relevant facts and circumstances: Your residence is located at XXXX. You are employed as a professional. Your employer permanently closed its physical office. No alternative workplace is provided. You are required to perform your employment duties from home full-time under the condition your employer continues to supervise the work. The remote working arrangements will continue in the current form. Your work duties include: • List of duties provided. To perform your work duties effectively, you have set up a dedicated room in your rented home as a home office. The room is used exclusively for business purposes. The lease agreement indicates the property is jointly leased; however, you solely paid all outgoing rent. The total area of your home is X square metres per your calculations from your home floor plan. The total area used for the office is X square metres (X percent of the total floor area) per your calculations. Your employer pays you a home office allowance used exclusively for expenses incurred for utilities, office equipment and other necessary resources to perform remote work. The allowance does not offset rent costs.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1