Private ruling: Work related expenses - occupancy
Date of advice: 30 March 2026
Published: 22 June 2026
Ruling period: Year ending 30 June 20YY
Date scheme commenced: 1 July 20YY

Ruling: Q1: Are you entitled to claim a deduction for part of your apartment as a work-related deduction under Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. Based on the information provided to the Commissioner you can claim part of the total rental cost of your apartment as a work-related deduction. The rental expense can only be claimed as a deduction from the time you commenced working remotely for your new employer. You use a bedroom in your apartment as an office to carry out your work from. You work remotely in Australia for Employer Z, and they do not have offices in Australia. You are able to claim part of your rental expense on the apartment as a deduction under section 8-1 of the ITAA 1997.

Relevant facts and circumstances: You work for Employer Z. You have worked for Employer Z for a number of months. Employer Z does not have any offices in Australia. Your work contract states that you are to work remotely. You work from a room in your rented apartment. The room is your office and used solely for work purposes. You share the apartment with your partner. You pay an amount per week for the apartment. The room used by you as an office is a percentage of the apartment. You have supplied a copy of your employment contract along with a letter from your employer saying you are required to work from home.

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