Is my home office set up tax deductible?
If you work from home in Australia, your home office set up may be tax deductible – which is great news because more people than ever are now working remotely. However, knowing what work from home expenses the Australian Taxation Office (ATO) allows you to claim for is just as important.
Whether you work from home every day or just a few days a week, you’ve probably got a lot of home office gear. With tax time fast approaching, it’s time to look at what items you can claim on tax, and make sure you have the correct insurance policy/s in place to cover them.
Claiming home office expenses when working from home
When you work from home, you may be able to claim on home office equipment – things like your computer, printer, desk and office chair.
You might also be able to claim on other costs, such as work-related phone and internet expenses, occupancy expenses and the decline in value of a computer (work related portion) and office equipment. There’s even some insurance deductions you may be able to claim on tax. Just be sure to keep a record of these expenses because you’ll need to prove you used them for work.
Everyone has a different working arrangement at home, so it’s best to check out the ATO Home Office expenses to see what applies to your situation.
If you’re running a business from home, the ATO has different rules for you. Check out what expenses you may be able to claim for a home-based business and the instant asset write-off for eligible businesses.
Tips for claiming your home office gear
Make an inventory list
Keeping an inventory of your valuables is a great way to track what you own to make sure you have adequate home insurance and comes in handy if you ever need to make an insurance claim. It’s also a great way of knowing what items you own and use for work purposes come tax time.
Keep your receipts
Hang onto your receipts when you buy new gear, such as a standing desk or other office furniture, for work. You’ll need them if you want to claim deductions. It’s always a good idea to note the model and serial numbers on any device. This can help track an item you might claim on over time, while providing useful information if you need to source replacements or compatible parts. Serial numbers can also be assigned to software packages.
Digitise your records
Your smartphone lets you store digital records elsewhere. Take photos of the items and the receipts with your smartphone, then store them on an external hard drive (kept off-site, of course) or in a cloud-based storage service like iCloud or Google Drive.
Cover your home office gear with AAMI Home and Contents Insurance
Things like theft, fires, floods and storms can affect anyone’s home. If it does happen to you (touch wood it never does!), Home and Contents Insurance may cover the costs of replacing or rebuilding your home and the contents inside.
Luckily, AAMI Home and Contents Insurance can cover home office equipment, like a desktop monitor and desk. Some exclusions may apply, so be sure to check the Product Disclosure Statement (PDS) first.
Insurance for home businesses
Home and Contents Insurance can cover your home, its contents, or both if they need repairing or replacing after an insured event. But if you run a small business from home, a standard home policy can leave your business assets without cover. Luckily, AAMI Business Insurance can help! An AAMI Business At Home policy can combine cover for your home and business into one convenient policy.
Get a copy of your tax invoice online
It’s quick and easy for eligible customers. You don’t even need to log in! Simply provide your name, date of birth, and phone number to receive your tax invoice in moments.
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AAMI Home and Contents Insurance is issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) trading as AAMI. AAMI Business Insurance is issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) trading as AAMI Business Insurance. This advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available.
The information is intended to be of general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.