Square metre rates for dual use of premises
Business owners, especially small business owners, often use their private residence for both business and private purposes. A business owner may be able to claim deductions for this business use. The square metre rate method is a simplified method for apportioning utilities costs between business and private use.
Premises costs such as mortgage interest, rates and rent cannot use the square metre rate. Those costs must be deducted based on the business proportion of the actual expenditure incurred.
The square metre rate is adjusted annually for movements in the Consumers Price Index (CPI).
OS 19/03 Square metre rate for the dual use of premises
This statement explains how to use the square metre rate to calculate a taxpayer's deductible expenses for the business use of their private residence.
Annual rates
Earlier annual CPI adjustment rates are available here.