Can I Claim Tax Back on Furniture for a Home Office?

Key facts

1. Home office items under $300 can be claimed as an immediate full deduction on your tax return
2. Items over $300, such as desks and laptops, must be claimed through depreciation over time
3. The ATO's shortcut method combined multiple home office expenses but expired on 30 June 2022

Claiming your home office setup at tax time doesn't have to be a headache. This guide breaks down how the ATO treats furniture and equipment under and over $300, walks through a real itemised example, and explains what replaced the shortcut method. If you're setting up or upgrading a home office, this is your plain-English guide to claiming it properly.

What can you claim on home office furniture and equipment?

If you kitted out a home office to keep working or launch a new venture, the ATO generally lets you claim the furniture and equipment involved. The trick is knowing which items get claimed outright and which ones need to be depreciated.

Here's the split that matters:

1. Items costing $300 or less: claim the full cost immediately, no depreciation required
2. Items costing more than $300: claim a deduction for depreciation (the decline in value) over the item's effective life
3. Common running costs: often covered under the fixed-rate 70c per hour method, so no separate depreciation needed

How does the $300 threshold work for home office claims?

Sit happens, but understanding this rule makes tax time a lot less painful. When you set up a home office, the ATO doesn't care about your total spend as one lump figure - it cares about each item individually.

That means you look at every single purchase on its own merits and ask: does this item cost more or less than $300? Cross the line, and it gets depreciated. Stay under it, and you claim the lot straight away.

What does an itemised home office claim actually look like?

Numbers speak louder than explanations, so here's a real-world example. Say you spent $1,250 fitting out your home office. Here's how that breaks down item by item:

Even though the total spend hit $1,250, only two items actually cross the $300 threshold: the desk and the laptop. Everything else - chair, monitor stand, keyboard, webcam - gets claimed straight away as an immediate deduction.

What was the ATO's shortcut method and does it still apply?

The ATO rolled out a "shortcut method" to make depreciation claims easier during a stretch when home offices multiplied overnight. It started as a response to expenses incurred between 1 March and 30 June 2020 for the 2019-20 tax year, then carried through the 2020-21 and 2021-22 income years.

It worked similarly to the fixed-rate 70c per hour method, except it bundled in all your home office expenses under one rate - simpler paperwork, one number to remember.

Here's the catch: the shortcut method expired on 30 June 2022. If you're claiming for periods after that, you're back to the fixed-rate method or claiming actual costs item by item, as covered above.

How do you calculate depreciation on home office items now?

With the shortcut method off the table, working out depreciation on bigger-ticket items is back to the standard approach. The ATO offers a depreciation and capital allowances tool to help you manage these claims, including situations where an immediate deduction still applies.

Whichever method you use, keep your paperwork tight. That means:

1. A record of how much you use your furniture and equipment over a sample four-week period
2. Itemised phone account statements where relevant
3. Receipts for small expenses up to $200
4. Receipts for any depreciating assets you're claiming

Good records now save you a world of stress later, especially if the ATO comes knocking for evidence.

Why JasonL is trusted. Built for reliability. Delivered without delays.

Setting up a proper home office - or scaling one across a growing team - shouldn't mean waiting weeks for gear to turn up. Here's what backs up every order:

1. 3-5 working day delivery on stocked items, so your setup isn't stuck in limbo
2. Australia-wide coverage, whether you're kitting out one home office or fifty
3. A large in-stock product range covering desks, chairs, storage and accessories
4. Professional installation available for larger or more complex setups
5. 10-year structural warranty on applicable products, so your investment is protected long after tax time

How JasonL compares to other suppliers. Clear differences. No noise.

Buying home office furniture is one thing - buying it from a supplier who won't leave you hanging is another. Here's what to weigh up:

1. Check whether stock is genuinely on hand or backordered from overseas
2. Confirm delivery timeframes upfront, not after you've paid
3. Ask if installation support is available for desks and larger items
4. Look for warranty terms that go beyond a token 12 months
5. Compare whether the range covers your whole setup, not just one category

FAQ

Can I claim my entire home office setup as one deduction?

No. The ATO requires you to look at each item individually rather than the total spend. Items costing $300 or less can be claimed in full immediately, while anything over $300 needs to be depreciated over its effective life. Lump-sum claims for a whole setup won't fly.

What counts as a depreciating asset in a home office?

Generally, any single item that costs more than $300, such as a desk or a laptop. These items decline in value over time, so instead of claiming the full cost upfront, you spread the deduction across the asset's effective life.

Is the shortcut method still available for home office claims?

No. The shortcut method applied to expenses from 1 March 2020 through to 30 June 2022, covering the 2019-20, 2020-21 and 2021-22 income years. Since it expired, you'll need to use the fixed-rate method or claim actual costs for each item.

Do I need receipts for every home office item I claim?

Yes, particularly for depreciating assets and any small expenses up to $200. You should also keep a record of how much you use your furniture and equipment over a sample four-week period, along with itemised phone account statements where relevant.

What's the easiest way to work out depreciation on my home office furniture?

The ATO's depreciation and capital allowances tool is built for exactly this. It helps you manage claims on items over $300, including cases where an immediate deduction is available.

Should I buy home office furniture before or after the end of the financial year?

That depends on your cash flow and what you need working right now. If you're eligible to claim depreciation either way, there's no tax penalty for buying at either point in the year - just make sure you keep the receipt and record the purchase date correctly for your return.