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Is Business Storage Tax Deductible?
A plain-English guide for Australian businesses on deducting storage rent and insurance, and claiming GST credits.
General information only. This is not tax or financial advice. Check your situation with your accountant or the ATO.
The short answer
The short answer
If you rent a storage unit to run your business, the rent is generally a deductible business expense. So are insurance premiums for the stock and equipment you keep there. If you and the storage provider are both registered for GST, you may also be able to claim GST credits on the rent.
What may be deductible
The ATO treats most everyday running costs as deductible in the year you pay them. Here is how that applies to storage.
Storage unit rent
Renting premises for your business is a deductible operating expense, generally in the year you pay it. A storage unit used for business stock, tools or records fits the same logic.
Watch for: Mixed personal and business use. Apportion the rent and keep a note of how you worked it out.
GST on the rent
If you and the provider are both registered, or required to be registered, for GST, you may be able to claim GST credits on the rent through your BAS.
Watch for: Deduct the amount excluding GST and claim the GST separately, so you do not count it twice.
Insurance on stock and equipment
Business insurance premiums, including fire and burglary cover, are generally deductible operating expenses.
Watch for: Whether the policy covers goods kept off your premises. Check with your insurer.
Packing supplies
Boxes, bubble wrap and tape used in your business are generally operating expenses.
Watch for: Larger equipment purchases, which may be treated differently. Ask your accountant.
Insurance and your stored goods
Claiming the premium is the easy part. The more useful question is whether your cover applies once stock and equipment leave your premises.
- Check your business policy covers goods stored away from your main premises, and whether the limit changes at a storage facility.
- Ask your insurer what they need from you, such as an inventory list, photos or the facility’s security details. Our sites have CCTV security and every unit is individually alarmed.
- Check what cover applies at the storage facility itself and what it excludes, so there are no gaps between the two policies.
- Keep your policy documents with your tax records.
Keep these records
- Tax invoices for each month’s rent. Our invoices show our ABN and GST.
- Proof of payment, such as bank or card statements.
- Your insurance policy and premium notices.
- A short note of what you store and how it is used in the business.
- The ATO generally expects business records to be kept for five years.
Questions for your accountant
- Is my unit used fully for business, or do I need to apportion the cost?
- Am I registered for GST, and can I claim credits on the rent?
- Does my current insurance cover stock and equipment kept in storage?
- Would any equipment I store be treated as an asset rather than a running cost?
Sources
Storage costs and tax treatment depend on your circumstances. This page is general information and may change.
Business storage tax FAQs
Is business storage tax deductible?
Generally, yes. If you rent a storage unit to run your business, the rent is generally a deductible operating expense, and so are insurance premiums for the stock and equipment you keep there. Your situation may differ, so check with your accountant or the ATO. This is general information, not tax advice.
Can I claim GST credits on storage rent?
If you and the storage provider are both registered, or required to be registered, for GST, you may be able to claim GST credits on the rent through your BAS. Deduct the amount excluding GST and claim the GST separately. Check with your accountant.
What records should I keep for a business storage unit?
Keep tax invoices for each month’s rent, proof of payment, your insurance policy and premium notices, and a short note of what you store and how it is used in the business. The ATO generally expects business records to be kept for five years.
What if I use the unit for business and personal items?
You may need to apportion the cost between business and personal use and keep a note of how you worked it out. Ask your accountant.
Tell us about your business.
The more you tell us, the better we can match you to a unit and a site. A local team member will come back with a tailored quote.
- 1We review your enquiry.
- 2Our team will call to confirm size, site and access.
- 3You get a tailored quote, with one invoice for several units.
Prefer to talk? Call 8758 0000.