Running expenses
Running expenses - home based business
Whilst running a business from home can look cheaper because you
have no need for commercial premises, you could very quickly see
your household bills increase, not least your electricity and gas
bills could rise significantly.
If you're running a business from home, you could look to claim
some of the electricity and gas costs back on your tax return.
If you are using a substantial amount of electricity, such as a
shed or workshop in your garage (if you're a tradesperson) or using
your kitchen for commercial purposes, you will have a very good
argument to claim some costs back.
The simplest and easy way to do this, is to meaure the floor
area of your home that is dedicated to running your business.
For example if you run a business from a shed which amounts to 10%
of the floor space of your home (and the only use of that space is
for your business) you can claim 10% of your energy bill costs.
If your work within the general household space, you will need
to look to prove what may be a reasonable assesment of additional
costs your incur by running your business from home.
For more details advice, we recommend speak to the Australian Tax Office, further details can
be found on their website.
Cut your home energy bills today!