Who can claim
This deduction is available to individuals.
- The home area has the character of a place of business, such as being clearly identifiable, not readily adaptable for private use, used exclusively or almost exclusively for business, or regularly visited by clients.
What you cannot claim
- A general study or desk in a living area usually supports running expenses rather than occupancy expenses.
- Using part of the home as a place of business can affect capital-gains-tax treatment where occupancy costs were deductible, even if you did not actually claim them.
- Do not enter the same rent, mortgage interest, rates, land tax or insurance amount again under business premises costs.
How the amount is worked out
Claim only the eligible business-use portion of home occupancy costs after considering the capital-gains-tax consequences. CGT depends on entitlement and place-of-business use, not on whether the deduction was entered in a return. Enter each occupancy amount once and do not repeat it under business premises costs.
Records the ATO expects
- Home-cost records
- Floor-area or usage calculation
- Evidence of place-of-business characteristics
Before you rely on this rule
Occupancy claims can affect the main-residence capital-gains-tax outcome. Review the ATO guidance before adding an amount.
Where this rule comes from
Primary source: ATO home-based business expenses (Updated 30 June 2025). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.
Supporting sources:
- ATO home-based business and CGT (ATO guidance accessed 30 July 2026)