Clients are encouraged to track how many hours they are spending in a dedicated office at home as you may be able to claim some expenses at in one’s own income tax return.
There are two methods for claiming home expenses:
- using a diary for actual costs of the home office, or
- using a fixed rate per hour regardless of actual costs (for the 2016 financial year, this is a $0.45 per hour tax deduction)
The home office space must be dedicated to your income-earning work. The actual costs method generally does not include occupancy expenses (expenses for simply owning or renting the property regardless of the home office space).
