Private ruling: Deduction for Work related office expenses
Date of advice: 20 November 2017
Published: April 2018
Ruling period: Year ended 30 June 2017
Date scheme commenced: 01 July 2016

Ruling: Q1: Are you entitled to claim a portion of rent as home office expenses under sub-section 8(5) of the Income Tax Assessment Act 1997 ? | A1: Yes Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income or are necessarily incurred in carrying on a business for the purpose of gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature. In your situation as you do not have an allocated work space provided by your employer, and you have allocated a room for exclusive use as a home office you are therefore able to claim apportioned expenses for occupancy and running costs.

Relevant facts and circumstances: You are employed in the Medical field. Your employer acknowledges that you do not have an allocated desk space in their branch office. You are required to work in the field completing all relevant resultant paperwork in your home office space. You have a separate room set up as an office with company provided equipment including a computer, phone, printer/scanner/fax. The area is deemed to represent a % of the total square area of the home.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1 and | Income Tax Assessment Act 1997 Division 900