Can You Claim Coworking Space on Tax? A Guide for Australian Freelancers & Small Businesses
If you're a freelancer, sole trader, or small business owner paying for a coworking desk or private office, one question comes up almost every tax season: can I actually claim this? The short answer is usually yes, but how you claim it, and how much, depends on your setup.
Here's what to know before you file.
Note: this is general information, not tax advice. Always confirm your specific situation with a registered tax agent or accountant.
The General Rule
In Australia, the ATO allows deductions for expenses that are directly related to earning your income. A coworking membership or desk hire fee usually qualifies, because you're paying for a space specifically to run your business or complete your work, the same principle that lets you claim a home office, a laptop, or business software.
What You Can Typically Claim
Depending on your membership and how it's used, coworking-related deductions can include:
Desk or membership fees : hot desk, dedicated desk, or private office costs
Meeting room hire : booked specifically for client meetings or team sessions
Printing and admin costs : where these are billed as part of your coworking usage
Business address or mail handling fees : if included in your plan
Travel to and from your coworking space : in some circumstances, though this is more restrictive and worth checking with an accountant
Coworking vs Home Office: Why the Tax Question Differs
Claiming a home office is more complicated than most people expect. The ATO's methods for home office deductions involve calculating a percentage of running costs (electricity, internet, depreciation on furniture) and require careful record-keeping to substantiate the claim.
A coworking desk is simpler in comparison. You have an invoice for a defined, work-related expense, rather than needing to apportion mixed-use household costs. For many freelancers and small business owners, this is one of the practical (non-tax-advice) reasons coworking ends up being a cleaner, easier-to-document alternative to working from home.
What You'll Need for Your Records
Whatever you claim, the ATO expects documentation. Keep:
Invoices or receipts for your coworking membership
Bank or card statements showing the payment
A note of what the space was used for, if it's not obvious from the invoice (e.g. "primary workspace for freelance design business")
Suite Seats provides invoices for all memberships and day passes, so you've always got a clear paper trail for your accountant or bookkeeper.
A Quick Example
Say you're a freelance consultant paying $300 a month for a dedicated desk, plus the occasional meeting room booking for client calls. If that space is used solely for your business, that $3,600+ a year in membership costs (plus meeting room fees) is generally deductible as a business expense, in the same way office rent would be for a larger company.
When It Gets More Complex
If you only use your coworking space part-time, or your business has a mix of personal and professional use, deductions may need to be apportioned. This is where a registered tax agent earns their fee, they can confirm exactly how your specific arrangement should be claimed and make sure you're not leaving money on the table or over-claiming.
The Takeaway
For most freelancers, sole traders, and small businesses, a coworking desk is a legitimate, well-documented business expense, and often simpler to claim than a home office. If you're currently working from your kitchen table and weighing up the switch, the potential tax deduction is one more reason coworking is worth a look.
Suite Seats offers flexible desk hire and private offices in Melbourne and Ballarat, with clear invoicing to keep your bookkeeping simple. Explore memberships or get in touch to find the right fit for your business.
FAQ
Is coworking space fully tax deductible in Australia? If the space is used solely for earning your income, it's generally fully deductible. If it's used for mixed personal and business purposes, the deduction may need to be apportioned, check with a tax agent for your specific case.
Do I need a separate invoice for meeting room bookings? It's good practice to keep records of all coworking-related costs, including meeting room hire, so your accountant can clearly identify each business expense.
Is coworking easier to claim than a home office? For many people, yes. A coworking invoice is a straightforward, defined business expense, while home office claims require calculating and substantiating a portion of household running costs.