Private ruling: Deduction: Home Office
Date of advice: 10 August 2018
Published: September 2018
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Are you entitled to a deduction for a portion of your occupancy expenses in relation to an area of your home used as a place of business? | A1: Yes. Having regard to the guidelines set out in Taxation Ruling TR 93/30, the areas of your home used to undertake your business activities are considered to be a place of business. As such, a deduction for the occupancy expenses (including a portion of the interest component of the mortgage repayments, rates and insurance premiums) are allowable in relation to the place of business. You should calculate your deductible expenses based on the portion of your property floor area you use as a place of business.


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


Relevant facts: You are a partner in a partnership that operates its main business activity from a property which you are the sole owner of. | A number of rooms (the rooms) at the property are used by you and another partner to carry out the business activities for the partnership including client visits. | The rooms are not used for private purposes. | Only you and the partner of the partnership have access to these rooms. | The property is listed as the address for the business and all mail and deliveries are made to the rooms located at the property. | On average you use the rooms for 40 hours per week for business activities. | Although some business activities are undertaken in the field, the majority of the business is carried on in the rooms.