Can I Claim a Tax Deduction on Home Office Furniture?

Can I Claim a Tax Deduction on Home Office Furniture? The 2020 COVID-19 health crisis has seen our way of life turn upside down, including how many of us do business. Many Australian businesses are making the safety of their employees and the public a priority, and as such, people all over the nation are currently (and for at least the foreseeable future) working from home. This, in itself, incurs costs. Are any of these tax-deductible? Are you permitted to claim a tax deduction on home office furniture? Businesses that routinely operate from home can claim costs of operation, including equipment and furnishings. But what about individuals or employees who are working from home? Can I Claim a Tax Deduction on Home Office Furniture? The good news is that, yes, if you are an employee now working from home due to the coronavirus outbreak, you may be eligible to claim deductions for expenses that relate to that work. These include expenses related to operating a home office – including phone, internet, and designated home office furniture. The legal proviso on claiming for home office furniture and other expenses as set out by the Australian Tax Office (ATO) does, however, dictate that there must either be a dedicated work area, or an area that is used exclusively for working during set times of the day or week. It is also required that you not be reimbursed for these costs by your employer. What Can I Claim? In terms of office furniture, you can claim the full cost for items up to $300, as well as the decline in value - i.e. depreciation - for items over $300. (The legalities of this can be complicated; keep all receipts and your accountant can calculate your deductions for you). You will need to maintain records and be able to demonstrate to the ATO (if required by them to do so) that the furniture you have purchased is specifically to support you to work from home. This includes expenses incurred for insurance, repair, or replacement of office furnishings and equipment. Examples of home office furniture for which you may be able to claim a tax deduction include:

Office chairs
Desks
Workstations
Chair mats
Filing cabinets
Bookcases

Why is the Right Home Office Furniture So Important? Having the right office furniture is an important aspect of successfully working from home. While it may seem easy enough to just sit at your dining table to get work done, this is not feasible for more than a day or two. To maximise your productivity and maintain a healthy work-life balance working from home, you need to designate a specific work zone in your home. It needs to be a dedicated workspace and be appealing, functional, and comfortable. This is essential for your physical and psychological wellbeing. Creating a specific work area will enable you to work more productively, yet also log off at the end of the workday. Choose Furniture at Work! Furniture at Work is your superior supplier of stylish, affordable, functional home office furniture. Australian owned and operated, we have the furniture solutions you seek, from credenza office furniture to ergonomic office chairs. Whether you are setting up an entirely new home office, refreshing your existing study space, or you simply seek a small desk and chair set up, let us provide you with the ideal furnishings to get the job done – the highest quality and at great prices. At the same time, benefit from a tax deduction on home office furniture this financial year and potentially into the future as well.