October 1, 2023


Move Step By Step

Working from Residence? Here is How You Can Get Tax Deductions in Australia

4 min read

These days, increasingly individuals are choosing self-employment and freelancing in Australia. As per a report, 1.38 million Australians had been self-employed in 2021. This determine comprised 10.6% of the full workforce within the nation.

With advantages like flexibility and a greater work-life steadiness, working from house is slowly turning into a mode of selection for professionals within the nation.

Know-how has given impetus to this pattern as anyone can now get entry to alternatives on the web. The perfect half is that professionals who earn a living from home and are self-employed also can declare tax deductions. 

Let’s get into this intimately and perceive the necessities and the objects on which people can declare deductions whereas working from residence.

Working From Residence Tax Deductions: 5 Areas 

The Australian Taxation Workplace (ATO) provides tax claims on these 5 classes: 


Everybody requires a fundamental workplace setup. The excellent news is that the ATO permits people working from residence to assert tax deductions for establishing their residence workplace.

You’ll be able to spend money on furnishings, together with chairs, desks, lamps, cabinets, and submitting cupboards, and get a tax deduction.


It’s a no brainer that any individual working from residence will want gear to work and full their assignments.

The ATO permits tax deductions on gear like computer systems, smartphones, tablets, printers, scanners, fax machines, wi-fi routers, community drives, and different work-related gear.

banner image

Aside from new gear, you may also declare a deduction on the price of repairs to your house workplace gear, furnishings, and furnishings. Cleansing prices are additionally included.

You’ll be able to totally declare for objects that value as much as $300 in your subsequent tax return. Nonetheless, when you’ve got objects costing greater than $300, you could unfold them out over a number of years.

The ATO considers the lifetime of an merchandise to provide the full tax deduction. Totally different property depreciate at totally different charges.

For example, the tax workplace considers the lifetime of a desktop to be 4 years. Thus, it would take as a few years to file your returns and declare your full tax deduction. You’ll be able to see the great listing of depreciation for property here.

READ: 11 Apps and Software Every Remote Worker Should Have on Their Device

Utility Payments

As you earn a living from home, you may also declare a portion of your utility payments, together with electrical energy and gasoline for heating, cooling, and lighting. 

It’s necessary to notice you can’t declare your total invoice as a result of the expense as a complete will not be for what you are promoting. As you earn a living from home, you’re additionally utilizing these amenities to your private use. 

You’ll be able to both declare a set fee or work with an accountant to calculate your bills. Nonetheless, that’s a tedious course of, and also you’ll additionally need to pay to avail of the accountant’s providers. It’s advisable to go together with a way that’s straightforward to work with.


Whenever you earn a living from home, you might be, possibly, utilizing some type of telecommunication to work together with shoppers and prospects.

The ATO means that you can declare deductions on such bills, like payments to your residence telephone, cell phone, and a devoted voice or fax line to your residence workplace. It’s also possible to declare the bills for residence or cell broadband payments.

As within the earlier case, you’ll not have the ability to declare all the quantity as a few of it are for private use. You’ll be able to declare a set fee or work out your bills.

It’s higher to go together with the second choice for those who’re extensively utilizing these for work. Your accountant might help you’re employed out an affordable determine. Guarantee you’ve got invoice information as proof. 

READ: 8 Helpful Tips to Maintain an Effective Remote Team


Though not a lot, provides additionally account for some bills whenever you’re operating a house enterprise.

You’ll be able to declare deductions in your bills for stationery, printer paper, toner, pens, notepads, staples, paper clips, sticky tape, envelopes, and stamps.

Tax Deductions for Staff Working from Residence

Staff who work for an employer however earn a living from home also can declare deductions:

Eligibility to Apply for Deductions

  • You should be working from residence and fulfilling your employment duties. It’s not nearly checking emails or taking calls. You should be doing rather more and contributing in a significant method. 
  • You ought to be incurring some extra bills because of working from residence.

Bills On Which You Can Declare Deductions

  • Electrical energy bills which can be used for heating, cooling or lighting 
  • Depreciation within the worth of workplace furnishings, furnishings, and gear like your desktop 
  • Web and telephone bills

READ: 6 Secrets to Being Productive in a Work-From-Home Setup

Plan Your Taxes In the present day!

Working from residence comes with its personal set of advantages. Greater than something, it means that you can discover your pursuits and do what you want.

The perfect half is you may declare taxes on the bills for establishing your house workplace and expenditures on utilities.

Planning your taxes with an accountant will enable you profit from these amenities supplied by the ATO and make what you are promoting worthwhile. 

Copyright © All rights reserved. | Newsphere by AF themes.