Small Business Tax Dictionary

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Occupancy expenses

Occupancy expenses are costs associated with owning or renting a property that is used for business purposes, such as a home office. These expenses may include rent, mortgage interest, property taxes, and insurance. In Australia, occupancy expenses can be partially deductible if part of the home is used exclusively for business. The deductible portion is typically calculated based on the floor area used for business activities relative to the total property area. Understanding and correctly applying occupancy expenses deductions can provide significant tax advantages for business owners and entrepreneurs. Proper record-keeping and compliance with Australian tax laws are essential to claim this deduction accurately.