McAteer and Commissioner of Taxation (Taxation)

This matter concerned an appeal by the taxpayer, Mr. McAteer, against an assessment by the Commissioner of Taxation regarding deductions for home office expenses for the 2017 and 2018 financial years. The dispute centred on whether the taxpayer had satisfied the requirements for claiming occupancy expenses and depreciation on certain assets used for work purposes at his home.

The primary legal issues before the Tribunal were whether the taxpayer was entitled to claim occupancy expenses for his home office, and whether he could claim depreciation on two iPads. Specifically, the Tribunal had to determine if the taxpayer's home office constituted a place of business, and if the employer's requirements necessitated working from home. The taxpayer also sought to rely on advice received via a live chat on the Australian Taxation Office (ATO) website, which he believed constituted an "oral ruling."

The Tribunal found that the taxpayer's employer required him to be on call 24/7 and that it suited the employer's business for rostered after-hours work to be conducted from the taxpayer's home. The Tribunal also noted that access to employer premises after hours was difficult. Consequently, the taxpayer was entitled to a deduction for a proportion of the occupancy expenses referable to the study/lab, which was wholly dedicated to work-related computers and storage. The Tribunal rejected the taxpayer's reliance on the live chat advice, finding it was not a ruling, and noted that incorrect advice from an ATO officer had caused no prejudice. The taxpayer was also entitled to a deduction for depreciation on two iPads, as their cost exceeded $300.

The matter was remitted to the Commissioner for the proper calculation of the deductible occupancy expenses for the study/lab and the depreciation on the iPads. The Commissioner was also to consider the deductibility of claims for rugs and coffee machines upon the submission of additional evidence by the taxpayer.