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Operating a business from home

Sep 30, 2010

Can I work from home?

Some businesses are better suited to home locations than others. Where the operator travels to the client's premises and does the desk work at the home/office, this style of operation is appropriate. Working from home can be isolating and those who work from home generally do so on their own, so they are unable to rely on outside motivation. Home-based business operators are advised to join clubs or business network groups to ensure that they keep abreast of industry issues that may affect their business.

Do I need to speak to my local council before starting business?

Before you start operating your business from home, it is advisable to check with your local council to see if there are any permits that may be required. Before signing a lease or commencing a business from home it is necessary to speak to your local council to check that the area is zoned for that type of business. In some instances, special permits or licences may be required. Also it is necessary to make sure you comply with some of the regulatory requirements, such as health issues, particularly in food preparation and distribution, and also environmental protection regulations regarding air and water pollution and noise control.

What expenses can I claim for tax?

There is extensive legislation & court rulings in relation to home office expenses. Some expenses that may be deductible include:

  • portion of rent;
  • portion of mortgage interest, council & water rates;
  • telephone/facsimile;
  • computer;
  • office furniture;
  • cleaning;
  • electricity;
  • stationery; and
  • reference books

Tags: Small BusinessStarting a Business

Author: Mr Taxman

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  • "Hi, I see clients for a mobile service3 in the suburbs. My employer has her home address listed as our office- but I rarely go there (just going straight from home from client to client). I get..."

    By: Billie at Feb 13, 2020 6:57AM

    Post: Claiming car expenses

  • "hi, I am currently a housewife and I plan to start a business. I do not want to mention this income to my husband when we do our individual tax returns. (I love my husband but he is stubborn and he..."

    By: happy at Feb 04, 2020 11:33AM

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  • "Regarding the $30k tax write off,what is the eligibility criteria for used vehicles. Is there a klm or build year limit?"

    By: Mark Johnson at Dec 21, 2019 8:58PM

    Post: Claiming car expenses

  • "Does my accountant have access to my registered relationship eg: will they know who I am in a relationship with and since when? Al"

    By: al at Oct 31, 2019 6:43AM

    Post: Marriage

  • "Hi, I am a doctor and I am contracted to work at Hospital "A". I however rotate every 10 weeks in different hospitals for my work (say Hospital "B" a few months ago). Am I able to claim car travel..."

    By: Sam at Oct 30, 2019 5:54AM

    Post: Claiming car expenses