Private ruling: Deductibility of occupancy expenses
Date of advice: 16 November 2018
Published: March 2019
Ruling period: Year ended 30 June 2019
Date scheme commenced: 1 July 2017

Ruling: Q1: Can you claim a deduction for rental expenses in respect of your home, where you undertake your family day care business? | A1: No. You do not satisfy the relevant requirements contained in Taxation Ruling TR 93/30 Income tax: deductions for home office expenses , for your home to characterise as a place of business. Further information on working from home can be found by searching ' QC 31977’ and ‘QC 23624' on ato.gov.au

Relevant facts and circumstances: You carry out a Family Day Care business from your home. The children in your care have access to the all areas of the house, and there is no area dedicated to, or exclusively used for, conducting the Family Day Care business. When other members of your family are present, including your own children, they use the same areas as the Day Care children. You do not have signage to identify your house as a business. You incur rental expenses for your home.

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