If you’re a freelancer, contractor, or sole trader using a coworking space, your desk is almost certainly tax-deductible. But the specifics matter — and getting them right means you’re not leaving money on the table at tax time.
Disclaimer: this is general information, not tax advice. Talk to your accountant about your specific situation.
The basics
The ATO allows you to deduct expenses that are directly related to earning your income. If you’re paying for a coworking membership to do your work, that’s a legitimate business expense — the same way renting a traditional office would be.
This applies whether you’re on a hot desk, a dedicated desk, or a private office. Monthly memberships, casual day passes, and meeting room bookings all qualify.
What you can claim
Your coworking costs fall under “rent and lease expenses” or “other work-related expenses” depending on your business structure. Here’s what’s typically deductible:
- Desk memberships — hot desk, dedicated desk, or private office fees
- Meeting room bookings — hourly or daily rates for meeting spaces
- Event space hire — if you’re hosting a client workshop or team day
- Additional services — mail handling, locker rental
If your coworking space is bundled (e.g., desk + internet + kitchen access), the whole membership fee is deductible. You don’t need to split out individual components.
Sole traders vs companies
If you’re a sole trader, you claim coworking costs in your individual tax return as a business deduction. It reduces your taxable income directly.
If you operate through a company or trust, the company pays for and claims the coworking expense. It’s a normal business operating cost.
Either way, keep your invoices and receipts. Monthly statements from your coworking provider are usually sufficient.
The home office comparison
Many freelancers claim the home office deduction instead. The ATO’s revised fixed-rate method gives you 67 cents per hour for working from home. If you work 8 hours a day, 5 days a week, that’s roughly $140 per week — or about $600 per month.
Compare that with a hot desk membership at around $350 per month. The home office deduction might give you a higher dollar figure, but you’re not getting the workspace, the community, or the separation of work and home.
Some freelancers use both: a coworking membership for days in the office, and the home office rate for days at home. If you split your time, you can potentially claim both — just make sure you’re not double-dipping on the same days.
Records to keep
The ATO expects you to keep records of:
- Invoices or receipts for every payment
- Proof of payment — bank or credit card statements
- A record of business use — if you use the space partly for personal purposes, you can only claim the business portion
Most coworking spaces issue monthly invoices or provide an online billing history. Download these and save them with your tax records. If your accountant uses Xero or MYOB, your coworking fees can be set up as a recurring expense category.
Don’t forget the extras
Beyond the desk itself, other work-related expenses incurred at your coworking space are also deductible:
- Travel to and from the coworking space (if it’s not your regular place of work — talk to your accountant about this one)
- Client meals or coffees in the coworking kitchen or nearby cafés (within ATO guidelines)
- Professional development events hosted at the space
The bottom line
Coworking isn’t just a lifestyle upgrade — it’s a business expense that reduces your tax bill. If you’re self-employed and not claiming it, you’re overpaying.
Get your invoices in order, talk to your accountant about the best way to structure the claim, and make sure you’re getting full value from both the space and the deduction.