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Business Conducted from Home

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Last updated 12 January 2007

Assessment of a business conducted from home

The following table provides reference points for the assessment rules of businesses conducted from home.    

If the business operates from the principal home and...

Then follow the assessment rules contained in...

a part of the home is used primarily or solely for business purposes that are not related to satisfying the effective land use test for the extended land use test,

Homeowner's Basic Assessment Rules.    

Note: The value of the area used for business purposes is assessable property.

that business relates to satisfying the effective use of land rules for the extended land use test,

Homeowner's Basic Assessment Rules.

Note: The value of the area used for the business is not an assessable asset.

no part of the home is used primarily or solely for business purposes,

Homeowner's Basic Assessment Rules.


The principal home has the meaning given by subsection 5LA(1) of the VEA and subsection 5LA(2) of the VEA. The principal home of a person is generally the place in which they reside. In certain circumstances, however, the principal home of a person can be the place in which they formerly resided. The following property is regarded as part of the principal home.

  • the residence itself (e.g. house, flat, caravan),
  • permanent fixtures (e.g. stoves, built-in heaters, dish-washers, light fittings and affixed carpets),
  • [glossary:curtilage:DEF/Curtilage] (i.e. two hectares or less of private land around the home where the private land use test has been satisfied, or all land held on the same title as the person's principal home where the extended land use test has been satisfied), or
  •       any garage, shed, tennis court or swimming pool used primarily for private purposes provided it is on the same title as the principal home.

 

 

Making effective use of land means that if the land has a potential commercial use (e.g. as a farm), the person must be making use of the land in order to generate an income.

The extended land use test is applied to income support recipients of veteran [glossary:pension age:DEF/Pension Age] whose [glossary:principal home:DEF/Principal home] is on a property of more than [glossary:two hectares:DEF/Two Hectares] as described in [glossary:section 5LA(4):] of the VEA.