Employees:

For an employee to claim home office cost deduction, the home office must be specifically equipped for the purpose of the employee’s trade, regularly and exclusively used for such purposes, and:

• if the remuneration earned is mainly in the form of commission or other similar variable payments, then home office cost can be deducted if the duties of such employee are mainly performed otherwise than in an office provided by his or her employer, or
• If the remuneration earned is not mainly in the form of commission or other similar variable payments, then home office cost can be deducted if the duties of such employee are mainly performed in such home office

Independent contractors:

Taxpayer not earning income from employment can deduct home office cost incurred in the production of income from a trade being carried on that is not of a capital nature. However, private and domestic expenditure cannot be deducted.