EOFY 2026: Understanding which office setup expenses can be claimed

Australian professionals, remote workers, and business owners are working hard to get the most out of their tax returns. With inflation affecting personal budgets and hybrid work becoming the norm, it’s essential to understand exactly which office setup costs are eligible for tax deductions. The Australian Taxation Office (ATO) has strict rules, especially for the 2025–2026 financial year, making it important to know what qualifies.

If you are hunting for premium ergonomic chairs in Australia or browsing ergonomic office chairs on sale to upgrade a setup causing you health issues, the EOFY sale in 2026 is the perfect time to act. Investing in a high-quality seat improves comfort and productivity while letting you claim deductions that reduce your taxable income.

At Sidiz Australia, we've created a detailed guide based on the latest ATO guidelines. Many of our clients miss out on significant deductions because they don’t fully understand the rules. Whether you’re trying to ease back pain or setting up a multi-use room for work and hobbies, this guide will help you understand the limits, calculation methods, and asset categories you must know by June 30. We’ll explain which items are eligible for immediate deductions, how depreciation works, and how to file your claims without running into compliance issues.

Can I claim a brand-new ergonomic chair on my 2026 tax return?

The answer is yes, but the way you claim it depends on the cost of the chair and your employment status.

From our experience working with many Australians to set up compliant home offices, the ATO classifies furniture as a capital expense. This means you cannot automatically deduct a high-value item as a regular operating expense. Instead, you must follow specific asset thresholds and depreciation rules.

What are the ATO rules for furniture under $300 versus over $300?

There is a clear distinction in the ATO guidelines for furniture priced under $300 compared to those over $300.

For individual employees and remote workers, the $300 limit is a key factor in tax planning. If you purchase an ergonomic chair or desk for $300 or less, you can claim the full cost as a deduction in your 2026 tax return, provided the item is used for work-related purposes. For example, if you buy a basic ergonomic chair during an EOFY sale for $280, the entire amount can be deducted right away from your taxable income.

However, if the furniture costs more than $300, you cannot deduct the full amount immediately.

Instead, you must claim depreciation over the item’s effective life. The ATO generally states that home office furniture has an effective life of 10 years. So, if you purchase a high-end chair for $600, you will need to claim a portion of the cost over several years, using either the prime cost or diminishing value method. Keep in mind that if you use the chair for both work and personal activities, such as gaming, you must only claim the portion that relates to work.

How do the actual cost method and the fixed rate method differ in 2026?

A common misunderstanding among Australian taxpayers is that using the ATO’s fixed rate method means they can't claim their office furniture.

 This is not true. The revised Fixed Rate Method for 2026, set at 67 cents per hour, covers expenses like electricity, gas, internet, phone, stationery, and computer consumables. Importantly, it does not cover the depreciation of capital assets such as desks, computers, and chairs. Therefore, even if you use the fixed rate for your running costs, you can still claim the depreciation of your ergonomic desk chair if it costs more than $300 or write it off entirely if it is under $300.

On the other hand, the Actual Cost Method does not use a flat hourly rate.

Rather than estimating, you must figure out every cost accurately, tracking the specific electricity consumption of your screen alongside the declining value of your office equipment. This method requires accurate record-keeping, itemised bills, and a detailed diary of your workspace usage.

How do I calculate my home office claim using the revised ATO methods?

To ensure your claim withstands an ATO audit, our team strongly advises evaluating both available calculation pathways. Selecting the wrong method could mean leaving hundreds of dollars on the table or inadvertently triggering a manual review from the tax office due to insufficient logbook records.

Expert Tip from the Sidiz Team: You don’t have to use the same method each year. Based on our experience with typical remote work setups, those with high computing needs and expensive ergonomic setups often benefit from the Actual Cost Method, while standard laptop users usually find the Fixed Rate Method simpler and less time-consuming.

The 2026 Fixed Rate Method (67 cents per hour) explained

To ensure your tax claim is approved and to avoid any potential issues with the Australian Taxation Office (ATO), we recommend considering both methods of claiming home office expenses.

Selecting the wrong method might lead to lost income or result in a manual review of your records by the ATO due to incomplete or inaccurate documentation.

• Substantive Records: You are required to maintain a continuous and up-to-date record of all actual hours you worked from home throughout the financial year. This can include a timesheet, logbook, or ongoing roster. The ATO no longer accepts text messages or backdated estimates as valid records.

• Evidence of Expenses: You must retain at least one monthly utility bill or statement for each expense category covered by the fixed rate method, such as one internet bill, one electricity statement, and one mobile phone contract. These documents help prove that you actually incurred these costs.

• No Double Dipping: Since the 67-cent rate includes internet and mobile expenses, you cannot claim a separate portion of your home Wi-Fi or phone bill if you use this method.

The Actual Cost Method: When is it worthwhile despite the extra paperwork?

Under the actual cost method, you must calculate the exact dollar amount spent specifically on work-related activities.

To find the cost of heating and cooling, you must compute the proportion of your dedicated work area in relation to the entire home, take into account the energy efficiency of your climate control system, and compare this with your actual electricity tariff. Additionally, for items like laptops, monitors, and webcams, you must keep a continuous 4-week diary showing the exact percentage of professional versus personal use.

What other home office setup items can I legally claim this financial year?

Beyond finding premium ergonomic office chairs on sale, there are several other elements of a modern workspace that qualify for deductions. Maximising your return requires identifying every asset that directly contributes to your earning potential.

Electronics, monitors, and computer peripherals

If your daily work involves managing spreadsheets, coding, or designing, a single small laptop screen is often insufficient. Additional hardware like 4K monitors, mechanical keyboards, ergonomic mice, webcams, and USB-C docking stations are all deductible. Like furniture, if a peripheral costs less than $300, it can be fully claimed in your 2026 tax return. If you purchase a high-end multi-monitor setup or a computer system costing more than $300, you must follow its depreciation schedule, typically based on a useful life of 3 to 4 years.

Lighting, heating, cooling, and cleaning expenses

Many professionals overlook the costs associated with maintaining a clean and well-lit workspace. If you use the Actual Cost Method, you can claim the exact percentage of cleaning products or commercial cleaning services used specifically for your home office. Task lighting, such as LED desk lamps designed to reduce eye strain, can also be claimed immediately if purchased for less than $300. These small deductions can add up and help lower your taxable income.

What is not allowed to be claimed? (Common pitfalls to avoid)

The ATO closely watches home office deductions for compliance. Based on updated tax guidelines, you cannot claim general household items or expenses that do not clearly contribute to income generation. The following items are strictly non-deductible:

1. General workplace refreshments: Coffee, tea, milk, snacks, or meals even if provided by your employer when you are at the office.

2. Occupancy expenses: Rent, mortgage interest, water, or house insurance. Claiming these as an employee is generally not allowed and might affect your Capital Gains Tax (CGT) exemption for your main residence.

3. Employer-funded items: If your employer provides equipment or a stipend to purchase a desk, you cannot claim that item on your personal tax return.

Why is the end of financial year (EOFY) sale 2026 the best time to upgrade your home workspace and gaming setup?

Timing your workspace upgrades around the June financial year end offers a significant financial advantage.

By purchasing high-quality ergonomic furniture during major end-of-financial-year sales, you can benefit from both deep retail discounts and immediate or structural tax relief.

When you shop for premium ergonomic chairs in Australia during this period, you often find retail prices heavily reduced to clear stock before the new financial year begins.

 For individual taxpayers, this can bring high-end seating options into more accessible price ranges. If a premium chair’s price drops significantly, your upfront cost is lower, and the tax deduction further reduces the net cost of the item. This creates a dual benefit: you save money upfront and receive a return through your tax refund, depending on your marginal tax bracket.

How to decide between an office chair and a gaming chair for a dual-purpose home setup?

The modern Australian home workspace is rarely used solely for traditional 9-to-5 employment.

With the rise of digital entertainment, creative freelancing, and competitive gaming, many workers use their desks for professional tasks during the day and for leisure activities like streaming or gaming in the evening. This raises an important question: which type of seating offers the best balance of tax eligibility, comfort, and support?

Ergonomic office chairs vs ergonomic gaming chairs: Features and support

Traditional office chairs often prioritise minimalist aesthetics, clean lines, and lightweight breathability. Premium models utilise advanced elastomeric mesh backing, which is incredibly advantageous during hot Australian summers, allowing heat to dissipate away from the body. These chairs are engineered around neutral posture principles, featuring synchronised tilting mechanisms that mirror the natural movement of the human pelvis.

On the flip side, dedicated ergonomic gaming chairs are built for deep immersion and extended periods of static relaxation. They frequently incorporate high-density moulded foam padding, wrap-around bucket seating inspired by motorsports, and extensive recline options that cater to casual sitting postures. However, cheaper gaming models often sacrifice active lumbar adjustment in favour of visual aesthetics, which can lead to poor spinal alignment during long, focused working sessions.

If you use your workspace for both corporate work and evening gaming, the ATO still permits you to claim the furniture asset—but you must calculate your deduction honestly. If your logbook shows that the chair is used 70% of the time for your remote accounting job and 30% of the time for recreational gaming, you can simply claim 70% of the depreciation or immediate purchase cost on your tax return. This makes a hybrid-use approach incredibly cost-effective.

Finding an affordable, high-quality solution with Sidiz

At Sidiz, we design our products specifically to bridge the gap between industrial office ergonomics and high-performance gaming needs. We believe that professional health shouldn't require an exorbitant financial investment. Our product lines are recognised for offering highly adjustable features—such as 4D omnidirectional armrests, dynamic lumbar support nodes, and precision seat depth adjusters—at a fraction of the cost of traditional commercial furniture brands.

By focusing on affordable, premium engineering, our team ensures that you don't have to choose between a corporate aesthetic and a recreational setup. Models like the Sidiz T50 provide the cool comfort of full mesh backing that professionals love, paired with the robust structural durability that gamers demand during extended sessions. Investing in a versatile brand like Sidiz ensures your home setup satisfies your physical needs while remaining fully compliant with ATO guidelines.

Maximise your workspace comfort and tax efficiency before June 30

To conclude, preparing for EOFY 2026 is all about making strategic, informed investments in your working environment. Don't fall into the trap of letting legitimate deductions slip away. Keep in mind that regardless of whether you opt for the fixed-rate approach or track your utility bills directly, your ergonomic home office furniture is still eligible for a claim. You can deduct it separately, either as an immediate write-off if it costs under $300 or through asset depreciation over time.

Take control of your health, comfort, and productivity this year. Explore the full range of seating options available at Sidiz Australia today to find the perfect fit for your home office or gaming studio. Ensure you secure your invoice before June 30, keep a precise logbook of your professional hours, and talk to a registered tax agent to safely maximise your financial return.

Claim your comfort and your tax deduction today by exploring the limited-time EOFY sale in ergonomic chairs in Australia .

Disclaimer: This comprehensive article is provided for general informational and educational purposes only. Information here is for educational purposes only and should not be taken as professional legal, financial, or tax advice. Tax regulations can change, and individual financial circumstances vary significantly. We strongly recommend consulting a registered Australian Tax Agent or certified public accountant (CPA) before finalising any claims on your 2026 tax re