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Is my home office set up tax deductible?

By  AAMI

If you work from home in Australia, your home office setup is tax deductible. This means you can claim deductions for your work expenses when you’re at home. This can include running expenses such as electricity, the decline in value of equipment or furniture, and phone and internet expensesi.

Whether you’re working from home temporarily or permanently, you’ve probably got a lot of home office gear. With tax time fast approaching, now is a good time to revisit your home office set up and ensure your valuables are covered.

Claiming home office expenses when working from home

When you work from home, you can claim on home office equipment – eg, computers, printers, furniture and more – up to $300, or the depreciation in value for items over $300. The ATO advises that, for calculating your running expenses, you should keep receipts showing the amount you spend on depreciating assets.

Plus, you can claim on other expenses, such as work-related phone and intenet expenses, occupancy expenses, and the decline in value of a computer (work related portion) and office equipment. Just be sure to keep a record of these expenses because you’ll need to be able to prove that 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 that apply. 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 covering your home office gear

Make an inventory list

Most insurance companies require you to keep an inventory of your valuables in case you have to make a claim, and AAMI is no exception.

Here are a few home office items you can include:

  • Computers and software.
  • Mobile phones.
  • Office furniture such as chairs, desks, and lamps.

Keep your receipts

Hang onto your receipts if you buy new gear for work, such as a standing desk or other office furniture. This comes in handy if you claim deductions. It’s always a good idea to make note of the model and serial numbers on the devices. This can help with tracking an item you might claim on over time and also provide useful information, such as when sourcing replacements or compatible parts. Serial numbers can also be assigned to software packages.

If you’re an AAMI customer with Home and Contents Insurance, your home office equipment is covered up to the value of $10,000. Pretty decent, huh? Browse our Home and Contents Insurance online today!

Explore AAMI Home and Contents Insurance

Digitise your records

With a smartphone handy, you can store digital records elsewhere. You could take photos of items and records with your smartphone, and keep them stored on an external hard drive (kept off-site, of course) or in a cloud-based storage service like iCloud or Google Drive.

Save with AAMI Lucky Club

If you’re investing in new home office equipment, AAMI Lucky Club is a great way to save on discounted items. It includes discounts from retailers including JB Hi-Fi e-gift cards.

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 it.

Luckily, AAMI Home and Contents Insurance can cover home office equipment, like a desktop monitor and desk, up to $10,000. If you think your home office equipment is worth more than this amount, please update your cover in My Account or give us a ring on 13 22 44 so we can help you out.

Read more:

i www.ato.gov.au/individuals/income-and-deductions/deductions-you-can-claim/home-office-expenses/

Insurance is issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) trading as AAMI. Read the Product Disclosure Statement before buying this insurance.
This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.