Telehealth office space in Epping. Featured

Telehealth office space in Epping

Telehealth office space was recently built for Shona Stewart running her Stewart Psychology business from the comfort of her own home in Epping.

Telehealth office space in Epping

“Highly recommend YZY Kit Homes. After looking at multiple backyard cabins for my telehealth office space I couldn’t find a product that compared both in terms of quality and cost-effectiveness. Now it is in place I wish the house had the same standard of doors and windows. The builder and his team were exceptionally professional and the cabin went up so smoothly. The biggest problem I have is that I don’t want to leave the office now!”

Testimonial from YZY Kit Homes Facebook page
Shona Stewart Inside Telehealth office space, Epping

Having operated her successful psychology practise for a number of years, Shona Stewart decided it was time to move the business to a predominantly telehealth focus. Needing the right space for work led to her installing an office Corsica Panorama cabin in her backyard.

Continue reading Telehealth office space in Epping
Tax benefits 2020 featured image

Tax benefits for cabin set up for work

For business owners and employees

Working from a cabin in your own backyard has more benefits than escaping traffic and enjoying a slower morning routine, as a separate home office space could be 100% tax-deductible. Small business owners can use an instant asset write-off scheme and the employees working from home can also claim expenses related to their work.

Instant asset write-off for Business

Update after Federal Budget 2020 release. There will be no cap on each asset cost previously limited to $150,000 and extended till 30 June 2022. We will update the information below when the Government sources will be updated.

The Australian Government is supporting Businesses through COVID-19 by increasing the threshold for each asset to $150,000 (up from $30,000) until 31 December 2020.

So, if you have a business with an aggregated turnover of less than $500 million and if you can prove your asset is:

  • work-related and
  • costs less than $150,000 and
  • Purchased, installed and ready for use from 12 March until December 31, 2020.

You are eligible to use simplified depreciation rules and claim the immediate deduction.

As this Tax scheme excludes buildings, for a cabin to be classed as a ‘Plant and Equipment’, it would have to be a free-standing unit attached to the premise only for the cabin’s temporary stability. Building a cabin as a demountable or non-fixture structure will have no implications on Capital Gains Tax (CGT) in the future when you sell your home.

Update 6 Oct 2020: Capital Gains Tax exemption for Granny Flats set to commence on 1 July 2021, provided legislation passes Parliament.

Most of YZY Kit Homes backyard cabins in sizes of up to 20 m² will fit this tax scheme costing as low as $14,800 for a small cabin kit or fully installed 20m² cabin within $58,000 price range. As well as an office, cabins can also be useful for business-related storage shed, a workshop, maybe a portable gallery or space as a work-related purchase. Talk to your nearest cabins builder about the many possibilities. But before making enquiries, check with your accountant for professional advice first.

If you own a small business and need more space to improve your business, building a backyard cabin could be justified just like the other six most surprising items businesses claimed under the scheme. As long as you can adequately explain the usage of the item is work-related, even the latest Xbox, PlayStation and Nintendo games consoles, children’s pillows, doona covers and pyjamas, decorative wall hangings, bedding and night lights can be legitimately claimed.

It is a good chance to benefit from the tax incentive as the $150,000 threshold will reduce to $30,000 from 31 December 2020.

Tax deductions for employees

If you are an employee and are working from your backyard home office, work-related expenses may be claimed to reduce your income tax. Work-related expenses include the cost of using equipment and utilities. If you have an outdoor cabin built as a demountable structure, it may be classed as a piece of equipment and depreciated over time.

When using your separate backyard home office space for work only, you may be able to fully claim costs of the decline in value of other equipment and furniture in your workspace. Also, other expenses such as electricity and gas for heating, cooling and lighting, phone and internet and other running expenses, including computer consumables (such as printer paper, ink) and stationery.

But first, get professional advice specific to your circumstances to make sure you can reduce your tax with having a home office built in your backyard.

Information sources:

For Business

Instant asset write-off expansion: https://business.gov.au/news/instant-asset-write-off-expansion

Instant asset write-off for eligible businesses: https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/

Businesses given beefed-up asset write-off in $300m expansion: https://www.smh.com.au/politics/federal/businesses-given-beefed-up-asset-write-off-in-300m-expansion-20200608-p550j3.html

For Employees

Home office expenses you can claim: https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/Home-office-expenses/

Employees working from homes: https://www.ato.gov.au/uploadedFiles/Content/IND/Downloads/Working-from-home.pdf

Capital Gains Tax exemption

CGT exemptions set to apply to granny flat arrangements: https://www.accountantsdaily.com.au/tax-compliance/14904-cgt-exemptions-set-to-apply-to-granny-flat-arrangements

Disclaimer

Information in this article is a general in nature and does not take into account your situation, is not a substitute for professional advice. You must not rely on the information in this article as an alternative to legal advice from your accountant, registered tax agent or other professional legal services provider. Please consult with a professional tax agent before the purchase.

Media release: 16-September-2020

Demand for Separate Residential Cabins Increases Sharply Following COVID-19

Demand for Separate Residential Cabins Increases Sharply Following COVID-19

Media release: for immediate use

  • Surprising Sales Boom for Residential Cabins due to COVID-19 Restrictions
  • Outdoor Residential Cabins Required for Family Displaced During COVID-19 Crisis
  • External Dedicated Space Needed for Work-from-Home Solution

Sales and demand for external office studios at home have increased exceedingly over the past few months, as a direct response to the COVID-19 pandemic, according to founder and Director of YZY Kit Homes, Lina Urbona.

Continue reading Demand for Separate Residential Cabins Increases Sharply Following COVID-19