Sunshine Coast Region, Queensland
Accountant in Tanawha
A business run from home, and what it means when the home is sold
Home-based business tax, capital gains planning and super for Tanawha professionals, consultants and their households, from a CPA practice.
Tanawha is a rural locality 4.3 km south-west of Buderim. Until 16 November 1989 the Bruce Highway ran through it, on the road now called Tanawha Tourist Drive. In the 2021 Census, 21.9% of its employed residents worked at home, Professionals made up 25.6% and Managers 18.7%, and Computer System Design and Related Services was among the top three industries of employment.
From sawmills to a botanic garden
Tanawha's history and its 2021 Census.
The name is believed to come from a Maori word for the taniwha, a legendary New Zealand monster. Local timber cutter Frank Cunning ran sawmills at Kiel Mountain from 1960, Forest Glen from 1968 and Nambour from 1973, and kept a 100-hectare cattle property along Sippy Creek. Bellingham Maze opened in 1993, and the Maroochy Regional Bushland Botanic Garden opened on 1 December 2001. There are no schools in Tanawha.
The Census counted 1,312 residents in 2021 with a median age of 40 and an average of 3.2 people per household. Of the occupied homes, 92.5% were separate houses and 43.4% were owned with a mortgage, at a median of $2,450 a month. Median weekly household income was $2,542.
Working from home: three questions with long tails
A dedicated office, studio or workshop
Why it happens
A consultant, developer or designer sets aside a room, a studio or an outbuilding used only for the business, and runs the business from there.
Why it matters
If an area of your home is set aside and used exclusively as a place of business, you can claim occupancy expenses such as a share of mortgage interest, rates and insurance. The trade-off comes at sale: you are then entitled to only a partial main residence exemption, and the gain referable to the business area, generally measured by floor area, is taxable. In the ATO's example, a business using 10% of the floor area disregards 90% of the gain. The small business CGT concessions may reduce what is left.
How we help
We help clients legally minimise tax by optimising business structures, claiming all eligible deductions, and planning ahead for key tax opportunities. Measure the business area and keep a floor plan with your records.
Running costs without the occupancy trade-off
Why it happens
Someone may work from home without a room set aside only for business.
Why it matters
If you are not entitled to deduct interest and other occupancy expenses, working from home doesn't affect your main residence exemption. Running costs such as electricity, internet and equipment can still be claimed.
How we help
More than just lodging on time, we help you plan ahead, optimise your position, and avoid surprises.
Division 293 on super contributions
Why it happens
A household with a high income adds salary sacrifice or employer contributions on top.
Why it matters
Division 293 tax is an extra 15% on concessional contributions when your income plus those contributions exceeds $250,000. It applies to the excess or to the contributions, whichever is less. The ATO's example: income of $240,000 and $15,000 of contributions is $5,000 over the threshold, so the tax is $750.
How we help
At Lomandra Accounting, we don't just crunch numbers. We work with you to understand your goals and help shape the future of your business and personal wealth.
Frequently asked questions
Will claiming my Tanawha home office affect capital gains tax when I sell?
Only if you claim occupancy expenses for an area set aside exclusively for business. Then the business share of the home, usually by floor area, loses the main residence exemption. Running costs alone don't affect it.
What is Division 293 tax?
An extra 15% tax on concessional super contributions for people whose income plus those contributions is over $250,000.
How is Division 293 worked out?
It is charged on whichever is less: the amount over $250,000, or your concessional contributions. The ATO assesses it after you lodge your return.
What should I bring for a home-based business return?
A floor plan of the home office and a summary of the business income and expenses.
Where to next
Have a question?
Before you claim the office
Accurate records and meaningful reports that give you clarity, not confusion.
Lomandra Accounting is a CPA Practice, registered with the Tax Practitioners Board and an SMSF Specialist. Emma, the Director, is a Certified Practicing Accountant (CPA) with extensive experience in commercial business management, and specialises in Self-Managed Super Funds (SMSFs).
- 07 5234 9201
- admin@lomandraa.com.au
- Sunshine Coast, QLD
- Monday to Friday, 9am to 4:30pm