Private ruling: Occupancy expenses
Date of advice: 7 October 2021
Published: December 2021
Ruling period: Year ended 30 June 20XX
Date scheme commenced: XX/XX/20XX

Ruling: Q1: Are you entitled to a deduction for a portion of your occupancy expenses? | A1: Yes. Your employer does not provide you with a work location. An area of your home is the sole base of operations for your income producing activities and you use this area exclusively for your employment. As your home is being used for both income producing and private purposes you will need to apportion your expenses. The proportion of occupancy expenses should be calculated as a percentage of floor space directly used exclusively for your employment compared to that of the entire dwelling. 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.

Relevant facts and circumstances: You are an employee. Your employer gave up their office space permanently. You are required to work from home indefinitely as your employer does not have a physical office anymore. You do not have any other alternative place to work other than your home. You live alone and use an area of your home exclusively for work, where only your work equipment is kept.

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