Australian renters could soon be eligible to claim thousands of dollars in tax deductions after a shock judgment by the Administrative Appeals Tribunal.

The Australian Taxation Office is now scrambling to overturn the decision, warning it could blow a significant hole in the Federal Budget and cost taxpayers billions of dollars.

The case centres on ABC radio presenter Ned Hall, who claimed $5878 in occupancy costs for a second bedroom in his Melbourne apartment that he transformed into a home office during the pandemic.

Mr Hall relocated to Melbourne with his wife in June 2020, renting a two-bedroom apartment he deliberately chose with a room he could use exclusively as a home office.

His wife, a yoga instructor, continued her classes online from the apartment’s main living area. Due t

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