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In Australia you the employee can get a tax deduction for work expenses. If you work from home you can claim partial rent, partial electricity bills, partial internet and so on.

Whereas if the employer pays for these things, they may have to levy a Fringe Benefits Tax on the value of the payments at the top marginal tax rate.

In total dollars it is sometimes cheaper to bump the salary and let the employee actually do the taxman dance.

Of course, I am not a lawyer, not a tax accountant and I don't work for the ATO. Seek advice, YMMV etc.



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