Using family home for work?

If you’re a business owner and use part of your family home for work, you can make a claim for this as a business expense.

You can claim a portion of your household expenses, such as rates, insurance, power and mortgage interest. The portion you can claim relates to the area of your home that you use for business.

How it works

If your home is 100 squire metre and your working space is 10 square meters – 10% of the total area. You can claim 10% of expenses that are not solely for your business.

If you aren’t using a separate area of home for business, you’ll need to take into account how much time you spend on your business and the area used.

If you’re GST registered, the GST content on home office expenses can be claimed as they’re paid in each GST return period or at the end of the financial year. Mortgage interest and rent don’t include GST.

What comes under Home Office Expense – GST

  • Water
  • Rates
  • Power
  • Insurance
  • Internet
  • Telephone

What comes under Home Office Expense – No GST

  • Rent
  • Mortgage Interest

If you have a mortgage you can claim the same proportion of your mortgage interest (but not the principal) paid during the year. There is no GST involved in this.

Check out our Home Office Expense Youtube training video