Is Self Storage Tax Deductible in Australia?

If you use a storage unit for your business or income-producing work, there is a good chance the rent is tax deductible. Here is a plain-English guide to when self storage can be claimed in Australia, how the GST works, and what records you need. This is general information, not tax or financial advice - always confirm your situation with your accountant or the ATO.

The short answer

Self storage is generally tax deductible when the unit is used to produce assessable income - for example storing business stock, tools, equipment, records or e-commerce inventory. If the unit is purely for personal household items, it is not deductible. Mixed use is apportioned.

When self storage is tax deductible

Under the general deduction rules, an expense is deductible if it is incurred in earning your income. Common situations where storage qualifies include:

• A tradie storing tools, materials and equipment between jobs
• An online or retail seller storing stock and packaging
• A small business storing seasonal inventory, signage or archived records
• A sole trader or contractor keeping work gear off-site
• Storing documents your business is legally required to retain

If the unit holds only business items, the rent is typically 100% deductible as a cost of doing business. See our business storage and tradies storage options.

When it is not (or only partly) deductible

Storage for purely personal belongings - household furniture during a move or renovation, for instance - is not tax deductible. If you store a mix of business and personal items in one unit, you can generally only claim the portion that relates to your business, so it pays to keep business items separate or in their own unit.

Claiming the GST

If your business is registered for GST, you can usually claim the GST included in your storage rent as an input tax credit on your BAS - that is one eleventh of the total. Our rates already include GST and we email a tax invoice after every payment, so the paperwork is simple.

What records you need

To claim storage you need evidence of the expense and its business purpose. Keep your tax invoices (we email one automatically after each payment), note what the unit is used for, and retain bank or card statements. Good records make tax time and any ATO query straightforward.

A quick example

A Brisbane tradesperson rents a 20ft container at Storage Land for $299 per month to store tools and materials. Over a year that is $3,588. As the unit is used entirely for the business, the rent is deductible, and if they are registered for GST they can also claim the GST component on their BAS. The effective cost after tax is lower again.

Frequently asked questions

Is self storage tax deductible for a sole trader?

Yes, if the unit is used for your business or income-producing activity. Apportion if it also holds personal items.

Can I claim storage for an investment or rental property?

Storage costs connected to producing rental income can be deductible. Check the specifics with your accountant.

Does Storage Land provide tax invoices?

Yes. A tax invoice is emailed automatically after every payment, with GST shown, ready for your records or BAS.

Is personal storage tax deductible?

No. Storage of purely personal household items is not deductible. Only business or income-producing use qualifies.

Need affordable, business-friendly storage in Brisbane? A 20ft container at Storage Land is $299/month with drive-up access, 24/7 entry and a tax invoice emailed after every payment. No lock-in contracts.

Book your container   or call 0452 043 647. See full pricing.

General information only and not tax, accounting or financial advice. Always confirm your circumstances with a registered tax agent or the ATO. ABN: 47 671 581 534.