I figured working from home would be great for the first month, and then I would start going mad. And when I asked who was going to pay for my chair, desk and computer, and who would pay the heating, lighting, ADSL and air-conditioning ... it looked like I was going to be out of pocket too.
You don't already have a chair, desk, computer, and internet access at home? Air conditioning may cost more, but you'd no longer be paying high gas prices to drive to and from work (which I'm assuming your company doesn't pay for now?).
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.
