Can I claim storage costs on my tax return for a rental property?

Yes. If you store furniture, appliances, or maintenance supplies for a rental property, the storage costs are deductible under Section 8-1 of the Income Tax Assessment Act 1997 as an expense incurred in producing rental income. You must keep receipts and be able to show the stored items relate to the rental property, not personal use.

What records do I need to claim storage as a tax deduction?

The ATO requires you to keep: (1) receipts or invoices for all storage payments, (2) your storage contract showing the rental period and cost, (3) a record of what's stored and its business/income-producing purpose, and (4) if mixed-use, a reasonable basis for your apportionment (e.g., 70% business items by volume). Keep records for 5 years from the date you lodge your tax return.

Can I claim storage if I work from home and store business stock?

Yes. If you run a business from home (e.g., e-commerce) and rent a storage unit for business stock or equipment, the full cost of that unit is deductible as a business expense. This applies to sole traders, partnerships, and companies. The unit must be used predominantly for business — if you also store personal items, you can only claim the business-use portion.

Is storage during a house move tax deductible?

Generally no. Storage costs during a personal house move are not tax deductible because they are a private expense. The exception is if you are relocating for work and your employer does not reimburse the cost — in that case, storage costs may be deductible as a work-related expense under the ATO's relocation provisions, but only if the move is required by your employer (not just convenient).

How much can I save by claiming storage on tax?

The tax saving depends on your marginal tax rate. For example, a sole trader paying $250/month ($3,000/year) for business storage who earns $90,000 (30% marginal rate under Stage 3 tax cuts) would save $900 in tax per year. At the 37% bracket ($135,001-$190,000), the same $3,000 deduction saves $1,110. The deduction reduces your taxable income, not your tax bill dollar-for-dollar.

Is Self Storage Tax Deductible in Australia?

Q: Is self storage tax deductible in Australia?

It depends on why you're using storage. If the storage unit is used for income-producing purposes — such as storing business inventory, work equipment, or rental property furniture — the cost is generally tax deductible under ATO rules. Personal storage (household items during a move, for example) is not deductible. If the unit is used for mixed purposes, you can only claim the business-use portion.

Self storage is tax deductible in Australia if the unit is used for income-producing purposes. Business inventory, work equipment, rental property furniture, and investment-related items all qualify under ATO Section 8-1. Personal storage — household items during a move, sentimental belongings — is not deductible. For mixed-use units, you can only claim the business-use portion.

The ATO doesn't care about your storage unit — they care about what's inside it and why. Here are the actual rules, with worked dollar examples for every common scenario.

Updated 20 March 2026 • 10 min read • 2,800+ words

Why a storage comparison site is publishing this

StoragePrices doesn't provide tax advice — we compare storage prices. But we noticed storage providers quietly hinting "your unit might be tax deductible!" without explaining the actual rules. That leaves customers guessing, and the ATO doesn't reward guessing.

This guide summarises ATO rules as they apply to self-storage, with worked examples. It is not a substitute for advice from a registered tax agent. If your situation is complex, talk to your accountant.

The Rule in One Sentence

Under Section 8-1 of the Income Tax Assessment Act 1997, you can deduct an expense if it is incurred in gaining or producing assessable income — and it is not private, domestic, or capital in nature.

✓ Deductible

Storage used for business inventory, work equipment, rental property items, or income-producing assets

✗ Not Deductible

Storage for personal belongings, household items during a move, or sentimental items with no income connection

1. Business Owner Storing Inventory or Equipment

If you run a business (sole trader, partnership, company, or trust) and rent a storage unit for stock, tools, equipment, or business records, the full cost is deductible as a business expense.

This falls under general deduction rules (s 8-1 ITAA 1997) — the storage cost is incurred in carrying on your business for the purpose of producing assessable income.

Worked Example: Landscaper

Sarah runs a landscaping business (sole trader, ABN registered). She rents a large unit (9m²) for $290/month to store mowers, a trailer, and bulk mulch supplies over winter.

Annual storage cost: $3,480
Taxable income: $95,000 (30% marginal rate)
Tax saving: $3,480 × 0.30 = $1,044 back at tax time
Effective monthly cost after tax: $203/month (not $290)

Claim at: Business income section → "All other business expenses" in your tax return (or via your BAS if registered for GST — you can also claim the GST component as an input tax credit).

GST tip: If your business is registered for GST, storage rent includes GST. You can claim an input tax credit for the GST component (1/11th of the total), reducing the effective cost further. On a $290/month unit, that's $26.36/month in GST credits — $316/year extra.

2. Home-Based Business or E-Commerce Seller

Selling on eBay, Amazon, Etsy, or your own Shopify store from home? If your garage is overflowing with stock, renting a storage unit is a legitimate business expense — and it's 100% deductible if the unit only holds business stock.

The ATO considers this part of your cost of doing business. The key requirement: the unit must be used predominantly for business purposes. If you also store your camping gear in there, you'll need to apportion (see Scenario 6).

Worked Example: eBay Reseller

Marcus buys and resells electronics on eBay (sole trader). He rents a medium unit (6m²) for $195/month to store stock.

Annual storage cost: $2,340
Taxable income: $62,000 (30% marginal rate)
Tax saving: $2,340 × 0.30 = $702 back at tax time
Effective monthly cost after tax: $137/month

If Marcus turns over $75,000+ and registers for GST, he also claims $212/year in input tax credits on the storage rent.

3. Rental Property Owner Storing Furniture

If you own a rental property and store furniture, appliances, or maintenance supplies in a storage unit, the cost is deductible against your rental income. The ATO treats this as an expense of managing your rental property.

Common scenarios: storing furniture between tenants, keeping spare appliances for quick replacements, or holding renovation materials. The stored items must relate to the rental property, not your personal home.

Worked Example: Investment Property Owner

David and Priya own a furnished apartment in Melbourne that they rent out. Between tenants, they store the furniture in a small unit (3m²) for $140/month for 4 months while renovating.

Storage cost for 4 months: $560
Combined taxable income: $160,000 (37% marginal rate)
Tax saving: $560 × 0.37 = $207 back at tax time

Claim at: Rental property section → "Other rental expenses" in your tax return. Keep the storage invoice alongside your rental property records.

Watch out: If the rental property is negatively geared, the storage deduction increases your rental loss — which then offsets other income. This is legitimate, but keep your records tight because the ATO closely scrutinises rental deductions.

4. Employee Storing Work-Related Items

If you're an employee (not a business owner) and you store work-related items that your employer doesn't provide storage for, you may be able to claim the cost. But the bar is higher.

The ATO requires that: (1) you incurred the expense yourself (not reimbursed), (2) the expense directly relates to earning your employment income, and (3) you have records to prove it.

Worked Example: Tradesperson

Jake is an employed electrician. His employer provides a work van but not secure overnight storage. Jake rents a small unit (3m²) for $120/month to store power tools and testing equipment that he owns.

Annual storage cost: $1,440
Taxable income: $85,000 (30% marginal rate)
Tax saving: $1,440 × 0.30 = $432 back at tax time

Claim at: Work-related expenses → "Other work-related expenses" in your tax return (item D5). Jake must show the tools are required for his job and not provided by his employer.

The convenience test: If you store work items in a unit because it's convenient (your garage is full of personal stuff) rather than necessary (no other reasonable storage option), the ATO may deny the claim. The nexus must be to your employment, not your lifestyle.

5. Relocating for Work

If your employer requires you to relocate and you need temporary storage during the move, the storage costs may be deductible — but only if the relocation is genuinely required by your employer (not just a career choice) and you are not reimbursed.

The ATO's position: if your employer pays for or reimburses the relocation (including storage), you can't also claim it. If they don't cover storage and it's a genuine employer-required transfer, the cost is deductible as a work-related expense.

Worked Example: Mining FIFO Worker

Tom transfers from the Sydney office to a Perth mine site at his employer's direction. His employer covers flights and accommodation but not storage. Tom puts household items in a large unit (9m²) for $250/month while he finds permanent housing — 3 months.

Storage cost for 3 months: $750
Taxable income: $130,000 (30% marginal rate)
Tax saving: $750 × 0.30 = $225 back at tax time

Keep the employer transfer letter as proof the relocation was required, not voluntary.

6. Mixed-Use Unit (Personal + Business)

Reality check: many storage units contain a mix of business and personal items. The ATO accepts this — but you can only claim the business portion. You need a "reasonable basis" for apportionment.

Worked Example: Mixed-Use Apportionment

Lisa rents a medium unit (6m²) for $210/month. She estimates 60% of the space holds e-commerce stock and 40% holds personal items (ski gear, Christmas decorations).

Annual storage cost: $2,520
Business portion (60%): $1,512
Taxable income: $75,000 (30% marginal rate)
Tax saving: $1,512 × 0.30 = $454 back at tax time

Apportionment by floor area is the simplest method. Take a photo showing the business/personal split when you first set up the unit, then update it each year.

Pro tip: If possible, rent a separate smaller unit for personal items. This gives you a clean 100% business deduction on the main unit with no apportionment complexity — and it's often cleaner at audit time.

7. When Storage is NOT Deductible

Most Australians using self storage won't be able to claim it. These are the most common scenarios where storage is not tax deductible:

Scenario	Why Not Deductible
Storing household items during a house move	Private/domestic expense — no income nexus
Downsizing and storing excess furniture	Personal lifestyle choice — no income nexus
Storing a deceased estate's belongings	Private expense (unless items relate to a business)
Renovation — storing personal items	Private expense (compare: renovation of a rental property — that IS deductible)
Storing collectibles or hobby items	Hobby, not income-producing (unless you trade in them as a business)
Storing a personal vehicle (car, boat, caravan)	Private use — unless the vehicle is used solely for business

The common thread: if the storage serves a private or domestic purpose, it's not deductible. The ATO doesn't care that storage is expensive — only whether it has a connection to producing income.

8. How to Claim Storage on Your Tax Return

Where you claim depends on how you earn income:

Your Situation	Where to Claim (Tax Return)	ATO Label
Sole trader / business	Business income section	"All other business expenses"
Rental property owner	Rental schedule	"Other rental expenses"
Employee (work-related)	Work-related expenses	"Other work-related expenses" (D5)
Company or trust	Company/trust tax return	"Rent" or "Other operating expenses"

myTax users: If you lodge through myTax (most individuals), you'll find work-related expenses under "Deductions" and rental property expenses under "Rent" in the income section. Storage doesn't have its own line item — it goes under "Other expenses" in the relevant category.

9. What Records the ATO Expects

The ATO can request records for up to 5 years after you lodge your return. For storage deductions, keep:

Essential Records

Storage contract — shows the unit address, rental period, and monthly cost
Payment receipts or bank statements — proof you actually paid
Description of stored items — what's in there and its business purpose

If Mixed-Use

Apportionment basis — how you calculated the business percentage (floor area is simplest)
Photo of the unit — showing the business/personal split (take one per FY)
Diary note — brief record of what changed if your use ratio shifts

Most storage providers email monthly invoices. Create a folder in your email or accounting software and auto-file them. If you get audited in 2029 for your 2026 return, you don't want to be scrambling for receipts from three years ago.

10. Tax Savings by Bracket (2025–26 FY)

How much you save depends on your marginal tax rate. Here's what different storage costs are worth as deductions across tax brackets:

Annual Storage Cost	16% bracket ($18,201–$45,000)	30% bracket ($45,001–$135,000)	37% bracket ($135,001–$190,000)	45% bracket ($190,001+)
$1,200/yr ($100/mo)	$192	$360	$444	$540
$2,400/yr ($200/mo)	$384	$720	$888	$1,080
$3,600/yr ($300/mo)	$576	$1,080	$1,332	$1,620
$6,000/yr ($500/mo)	$960	$1,800	$2,220	$2,700

Based on 2025–26 Australian resident individual tax rates (Stage 3 tax cuts applied). Excludes Medicare levy (2%). Actual savings include Medicare levy reduction, so real savings are slightly higher than shown. Does not include GST input tax credits for GST-registered businesses.

Reading this table: A deduction reduces your taxable income, not your tax bill dollar-for-dollar. If you're in the 30% bracket and pay $200/month for storage, the $2,400 deduction saves you $720 at tax time — meaning the unit effectively costs you $140/month after tax, not $200.

Quick Reference: Can You Claim It?

YES

Business inventory, work tools, rental property furniture, business records, employer-required relocation storage

PARTIAL

Mixed-use unit (business + personal) — claim the business-use percentage only, with records to support the split

Personal belongings, house-move storage, hobby items, personal vehicles, sentimental items — anything with no income nexus

Sources & Methodology

ATO guidance: Income Tax Assessment Act 1997, Section 8-1 (general deductions) and Division 25 (some specific deductions)
ATO ruling: TR 95/33 (income-producing purpose test) — the core test for whether an expense has sufficient nexus to income
ATO guidance on work-related expenses: ato.gov.au — deductions you can claim
2025–26 individual tax rates: ato.gov.au — tax rates for Australian residents (Stage 3 tax cuts applied from 1 July 2024)
Storage pricing examples based on StoragePrices median rates across Australian capital cities (March 2026)
Record-keeping requirements: ATO Taxation Ruling TR 96/7 (substantiation rules)

Disclaimer: This guide summarises ATO rules as they apply to self-storage costs. It is general information only and does not constitute tax, legal, or financial advice. Your circumstances may differ. Consult a registered tax agent (find one at tpb.gov.au) for advice specific to your situation.

Check Prices in Your Area

See what storage actually costs near you — real advertised rates from 7 providers:

Sydney Melbourne Brisbane Perth Adelaide Gold Coast Browse all suburbs →

Find the Cheapest Storage for Your Business

Now that you know it's deductible, find the best deal. Compare real unit prices from Kennards, National Storage, Storage King, Fort Knox, and more — for your suburb.

Compare Storage Prices Now →