Private ruling: Occupancy expenses - home office - no work location provided by employer
Date of advice: 27 November 2020
Published: January 2021
Ruling period: Year ended 30 June 2020
Date scheme commenced: 1 July 2019

Ruling: Q1: Are you entitled to claim a deduction for a portion of your rent expenses incurred in relation to your home office? | A1: Yes. Your employer does not provide you with a work location. Your home office is the sole base of operations for your income producing activities and you use this office exclusively for your employment. As your home is being used for both income producing and private purposes you will need to apportion your expenses. Information about the occupancy expenses you are entitled to claim and methods for apportioning those expenses can be found in Taxation Ruling TR 93/30 Income tax: deductions for home office expenses which can be found in the Legal Database on ato.gov.au

Relevant facts and circumstances: You are an employee of a foreign based company ( your employer ). Your employer had an Australian office that was located in NSW, however this office has since closed. Your employer does not currently have any offices in Australia. The head office is overseas. You work remotely from the apartment you are renting in NSW. You have a virtual supervisor and can only contact them via online. In your apartment you have a designated area for your home office. You do not have any family living with you and the office is not used for private purposes by anyone. Your employer reimburses some of your expenses related to work, including mobile phone bills and expenses related to your computer. You incur other expenses including internet, BNB, electricity and gas, and rent. Your employer does not reimburse you for these expenses.

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