Issued
2019

2019 square metre rate for dual use of premises

This article provides detail of the 2019 square metre rate for the dual use of premises. This rate is set in accordance with section DB 18AA of the Income Tax Act 2007.

Section DB 18AA of the Income Tax Act 2007 allows taxpayers to use a simplified method for the calculation of the business costs for premises that are used for business and other purposes. For example, a separate private living area.

The square metre rate of $41.70 has been set for the 2019 income year (1 April 2018 – 31 March 2019). The revised amount reflects the annual movement of the Consumer Price Index which rose by 1.5% for the 12 months to March 2019.

The purpose of s DB 18AA is to allow taxpayers to use a simplified method for the calculation of deductions for premises that are used for both business and personal purposes. This will reduce compliance costs for taxpayers.

Operational Statement 19/03 provides further information on the use of the square metre rate.