What is the difference between a Chartered Accountant and a regular accountant in Australia?

A Chartered Accountant (CA) has completed additional postgraduate training and practical experience beyond a standard accounting degree, and is credentialled by Chartered Accountants ANZ. This qualifies them to handle complex financial matters including tax planning, business structuring, SMSF auditing, and financial advisory work. A regular or general accountant holds a degree but typically does not hold the CA designation. At Verus, all our principals are Chartered Accountants, which means you receive specialist-level advice rather than generalist bookkeeping. This matters when your financial decisions have lasting tax or structural implications for your business or personal wealth.

How much does a tax accountant cost in Sydney?

The cost of a tax accountant in Sydney varies based on the complexity of your return and the services required. For a straightforward individual tax return, fees typically range from $150 to $400. For business tax returns (company, trust, or partnership), fees generally start from $500 and can rise significantly depending on the volume of transactions, payroll, and additional compliance work involved. At Verus, we offer transparent, fixed-fee pricing and a free initial consultation so you know exactly what to expect before you commit. Engaging a registered tax accountant rather than lodging yourself often saves more in deductions and maximises your return compared to the cost of the service.

What business structure should I choose when setting up a company in Australia?

Choosing the right business structure in Australia is one of the most important decisions you will make, as it affects your tax obligations, personal liability, and ability to grow. The four main options are: Sole Trader (simplest, lowest cost, but no liability protection), Partnership (shared ownership, each partner liable), Company (separate legal entity, limited liability, higher compliance costs), and Trust (flexible for asset protection and income distribution, but more complex to manage). For most SMEs and growing businesses, a company or discretionary trust structure offers the best balance of asset protection and tax efficiency. The right choice depends on your revenue, industry, number of owners, and long-term goals. Our chartered accountants at Verus can walk you through all options in a free consultation and set up the structure that works for you.

What is an SMSF and how do I know if one is right for me?

A Self-Managed Super Fund (SMSF) is a private superannuation fund you manage yourself, giving you direct control over how your retirement savings are invested. Unlike retail or industry super funds, an SMSF allows you to invest in a broader range of assets, including residential and commercial property, shares, and term deposits. An SMSF is generally worth considering if you have a combined super balance of at least $200,000 to $300,000, a long-term investment strategy, and the time to meet your trustee obligations. The ATO requires SMSFs to be audited annually and to comply with strict reporting rules. At Verus, our SMSF accountants manage the full setup, ongoing compliance, and annual audit requirements, so you can focus on building your retirement wealth without the administrative burden.

What is the difference between Xero and MYOB, and which is better for my business?

Both Xero and MYOB are leading cloud-based accounting platforms in Australia, but they suit different business needs. Xero is generally preferred by small businesses and startups for its clean interface, strong third-party app integrations, and real-time bank feeds. MYOB tends to suit businesses with more complex payroll requirements, multiple entities, or those that prefer a locally developed platform with strong ATO integration. At Verus, we are certified Xero Advisors and MYOB Partners, meaning we can implement, optimise, or migrate your accounting software regardless of which platform you use. Our team will assess your business size, payroll complexity, and reporting needs to recommend the right fit, so you are not paying for features you do not need.

What is a virtual CFO and does my small business need one?

A virtual CFO (vCFO) is an outsourced financial expert who performs the strategic functions of a Chief Financial Officer without the cost of a full-time executive hire. For small and medium businesses that need high-level financial planning, cash flow management, KPI tracking, and strategic advice but cannot justify a full-time CFO salary, a virtual CFO service fills that gap. At Verus, our virtual CFO service is available on demand, giving business owners access to strategic financial guidance when they need it most, whether that is during rapid growth, a restructure, a funding round, or when navigating a complex tax position. If you are a growing SME spending more time on financial decisions than on your core business, a virtual CFO is likely worth considering.

How can I legally reduce my business tax in Australia?

There are several legal strategies Australian business owners can use to reduce their tax liability. These include: choosing the right business structure (companies and trusts can offer significant tax advantages over sole traders); making pre-tax superannuation contributions; timing income and expenses around financial year end to manage taxable income; claiming all eligible deductions including home office, vehicle, equipment, and professional development costs; using small business tax concessions such as the instant asset write-off; and ensuring your business is split across family members or entities where appropriate. Tax minimisation is a specialist area and the rules change regularly with ATO updates and Federal Budgets. At Verus, our chartered accountants provide proactive tax planning as part of our annual service, not just at lodgement time, so you are always positioned to pay what you owe, and nothing more.

What is financial modelling and why does my business need it?

Financial modelling is the process of building a structured representation of a business's financial performance, typically in a spreadsheet or financial tool, to forecast future outcomes and support decision-making. A good financial model lets you test scenarios, for example what happens to your cash flow if revenue drops 20%, or whether you can afford to hire two more staff in the next quarter, before committing real money. Businesses commonly use financial models for raising investment, applying for finance, planning acquisitions, and managing cash flow through growth periods. At Verus, our financial modelling service goes beyond spreadsheets. We combine accounting expertise with strategic insight to build models that are commercially relevant, clearly presented, and designed to hold up under scrutiny from investors and lenders.

Do I need an accountant to set up a company in Australia?

Technically, you do not legally require an accountant to register a company in Australia. You can register directly through ASIC and set up an ABN through the Australian Business Register yourself. However, the registration step is only a small part of setting up a business correctly. Most business owners who go it alone without professional advice end up choosing the wrong structure, missing key compliance obligations (payroll, BAS, ASIC annual reviews), or setting up their books in a way that costs more to fix later. An accountant ensures your structure is right from day one for your tax position, liability protection, and growth plans. At Verus, we handle the full setup process for companies, trusts, and SMSFs, including ASIC registration, ABN and ACN applications, and accounting software implementation, so nothing falls through the cracks.

What is the difference between a bookkeeper and an accountant in Australia?

A bookkeeper manages the day-to-day recording of financial transactions, including invoicing, payroll, bank reconciliation, BAS preparation, and accounts payable and receivable. An accountant takes this data and uses it to prepare financial statements, lodge tax returns, provide tax advice, and guide broader business strategy. Many businesses need both. In practice, a bookkeeper ensures your records are accurate and up to date, while an accountant interprets that data to minimise tax, support growth decisions, and meet compliance obligations. At Verus, we provide both services under one roof. Our bookkeeping team works in Xero, MYOB, and Reckon, and our chartered accountants use that clean data to deliver accurate reporting, strategic tax advice, and business advisory support tailored to your goals.

Working From Home Tax Deductions Australia 2026: What You Can Claim

Working from home tax deductions Australia have changed significantly since the ATO revamped its rules, and many taxpayers are still claiming incorrectly — or leaving money on the table. Whether you are an employee doing hybrid work a few days a week, or a sole trader running your business entirely from a home office, understanding exactly what you can claim and how to substantiate it is essential before your next tax return. This guide covers both the 67 cents per hour fixed rate method and the actual cost method, with the ATO’s current requirements for the 2025-26 income year.

Person working from home at a desk with laptop — Working from home deductions apply to both employees and sole traders — but the rules differ significantly between them.

Working From Home Tax Deductions: The Basics

The fundamental rule for any working from home tax deduction in Australia is the same as any other deduction: the expense must be incurred in producing your assessable income, must not be capital or private in nature, and you must have records to prove it. The ATO’s guidance on working from home expenses sets out two calculation methods. You pick one for the full income year.

The Two ATO Methods: Fixed Rate vs Actual Cost

From 1 July 2022, the ATO replaced the old 52-cent method and the COVID shortcut method with a revised fixed rate. Here is how the two current working from home methods compare:

Fixed Rate Method

67¢/hr

Per hour worked from home
Covers: energy, internet, phone, stationery
No dedicated home office needed
Depreciation on equipment claimable separately
Cannot also claim internet or phone separately

Actual Cost Method

Varies

Claim exact work-use % of each expense
Covers: electricity, gas, internet, phone, depreciation, cleaning
Occupancy costs if home is principal place of business
Requires detailed receipts and usage records
More upfront work — often higher deduction result

The 67 Cents Fixed Rate Method Explained

The ATO’s 67 cents per hour working from home rate covers energy, internet, phone, and stationery in a single rate — you cannot also claim those separately. What IS still claimable separately: depreciation of home office equipment (computers, monitors, desks, chairs), repairs to equipment, and cleaning costs for a dedicated home office. To use this method, you need a continuous record of every hour worked from home — a diary, timesheet, or roster — from the start of the income year.

Example calculation

Sarah works from home 4 days per week (32 hours/week) for 48 weeks: 1,536 hours x 67 cents = $1,029.12 WFH deduction. She also claims depreciation on her work laptop separately.

The Actual Cost Method Explained

The actual cost method for working from home deductions produces a larger deduction in most cases but requires more documentation. You calculate the genuine work-related portion of each eligible expense. For electricity: calculate the running cost per appliance per hour of work use. For phone and internet: calculate work-use percentage from a representative four-week period and apply to annual bills. For equipment: apply the relevant depreciation rate to the work-use percentage.

What Expenses Can You Claim?

Expense	Fixed Rate (67c)	Actual Cost	Notes
Electricity / gas	Included	Yes (work %)	Cannot double-claim under fixed rate
Home internet	Included	Yes (work %)	Cannot double-claim under fixed rate
Mobile / home phone	Included	Yes (work %)	Cannot double-claim under fixed rate
Stationery / consumables	Included	Yes (work %)	Cannot double-claim under fixed rate
Computer / laptop depreciation	Separate claim	Yes (work %)	Keep receipts
Desk, chair, monitor	Separate claim	Yes (work %)	Under $300: immediate; over $300: depreciate
Cleaning (dedicated office)	Not included	Yes (work %)	Requires dedicated workspace
Occupancy costs (rent, mortgage)	No	Possibly	Only if home = principal place of business

What You Cannot Claim

The ATO commonly sees these errors in working from home tax deductions: the full cost of dual-purpose items, coffee or household groceries consumed while working, general home renovation costs, occupancy costs when the home is not your principal place of business, and claiming the same expense under both methods.

ATO audit flag

Claiming 100% of home internet, electricity, or phone as work-related is almost never justified and will attract ATO scrutiny. The ATO expects a reasonable work-use percentage that reflects actual usage.

Record-Keeping: What the ATO Requires

For the fixed rate method: a continuous log of every hour worked from home throughout the year (diary, timesheet, or roster). From 1 March 2023, a representative four-week sample is no longer accepted. For the actual cost method: receipts and invoices for every claimed expense, a four-week representative diary for phone/internet usage, and energy usage records. Keep all records for five years from the date of lodgement.

Home office setup with desk and monitor for tax deduction claims — A well-documented home office setup — with records of hours, equipment costs, and bills — supports a stronger tax deduction claim under either ATO method.

Capital Gains Tax and Working From Home

If you claim occupancy costs because your home is your principal place of business, you may lose part of your main residence CGT exemption when you sell. Employees claiming running costs only are generally not affected. Before claiming occupancy costs, get advice from our tax accounting team at Verus.

Sole Traders vs Employees: Different Rules

Employees can use either method. Occupancy costs are generally off-limits unless their employer requires them to maintain a home office. Sole traders operating genuinely from home may be able to claim occupancy costs if the home is their principal place of business. Company directors are in a similar position to employees. Our business advisory team can confirm the most appropriate approach for your situation.

How to Maximise Your WFH Deductions Legally

Key steps: track your hours from day one of the income year; compare both methods before lodging; claim equipment in the right year; keep every receipt for home office purchases; and lodge through a registered tax agent. Also review our guide to small business tax deductions for a broader view of what you can claim.

Frequently Asked Questions: Working From Home Tax Deductions Australia

What working from home expenses can I claim in Australia?

Under the 67-cent fixed rate method: energy, internet, phone, and stationery as a combined rate. Under the actual cost method: the exact work-related portion of each of those expenses plus equipment depreciation and cleaning.

What is the ATO fixed rate for working from home in 2026?

67 cents per hour worked from home, covering energy, internet, phone, and stationery. Introduced from 1 July 2022. You cannot claim those items separately if using this method.

Do I need a dedicated home office to claim WFH deductions?

Under the fixed rate method, no. Under the actual cost method, occupancy costs require a dedicated exclusive work area. Running costs do not require a dedicated room.

Can I claim occupancy costs while working from home?

Only if your home is your principal place of business AND you have a dedicated exclusive work area. Most employees cannot claim occupancy costs. Sole traders may qualify, but CGT implications apply.

What records do I need for working from home deductions?

Fixed rate: a continuous log of hours worked from home throughout the year. Actual cost: receipts for all claimed expenses, a usage diary for phone/internet, energy usage records, and depreciation records for equipment.

Can I claim both the fixed rate AND actual costs?

No. Choose one method for the full income year. You cannot combine methods or switch partway through.

Can I claim depreciation on home office equipment?

Yes. Under the actual cost method, depreciation is claimed based on the work-use percentage. Under the fixed rate method, equipment depreciation is still claimable separately — but internet, phone, and running costs are already in the 67 cents.

Can I claim a new desk or chair for my home office?

Yes, for the work-use portion. Under $300: immediate deduction at the work-use percentage. Over $300: depreciated over effective life.

Does working from home affect CGT when I sell my home?

Only if you claim occupancy costs. Employees claiming running costs only are generally not affected by CGT. Seek advice before claiming occupancy costs.

Can sole traders claim working from home expenses?

Yes, and they may have more flexibility around occupancy costs. The same record-keeping requirements apply, and CGT implications of claiming occupancy costs need careful consideration.