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FEATURE TECH

EOFY End of Financial Year

What you may not be able to claim

There are some grey areas where personal use often dominates, such as streaming subscriptions like Spotify and Netflix, smart home devices, and gaming laptops and high-end graphics cards (unless you are a digital creator or game developer).

Remember the ATO rules

Before you tap that “Buy Now” button during EOFY sales, make sure your tech upgrade decisions are ATO-smart. Words Bec Summer AIM TO CLAIM Tax time tech tips

Work-related use – the claim must be directly tied to earning income. Personal use needs to be apportioned. Over $300? – You’ll need to claim a deduction over the item’s effective life (depreciation). Keep purchase receipts – If you can't prove it, you can't claim it. Use the ATO myDeductions app to keep everything in one place and make tax time less stressful, and always retain physical/digital receipts for at least five years after lodging your tax return. Apportion smartly – Estimate the percentage of work use vs. personal, and keep written proof (e.g. a four-week record/log).

What you can claim and how Tax time doesn't need to be stressful if you know what you can claim for work-related expenses. Here’s a quick guide to the type of devices, software, and other tech-related costs you can deduct when prepping your tax return.

Devices you can claim This includes laptops, desktop computers, monitors, printers, and peripherals like keyboards, mice, docks, and cables. To claim a deduction on an item, it must directly relate to work use, and receipts and usage records (where applicable) must be kept to support your claim.

Software claims Purchased apps, subscriptions such as Microsoft 365, antivirus software, and even a VPN can be claimed if they support income-earning use. If your desktop or laptop came with pre installed software, it is considered a single claim. However, any software that you purchased separately can be claimed separately. Cloud storage Subscriptions, such as Dropbox and Google Drive, are claimable based on business- or work-related storage. How much you can claim Items that cost $300 or less can be claimed as a single and immediate deduction, as long as they are used primarily for work. If an item costs more than $300, you can claim a proportion of the initial cost each EOFY, which is calculated as the decline in value – depreciation – over its effective lifespan. You can check the ATO site for a device’s

effective lifespan – for example, a laptop is two years and a computer monitor is typically four years – and claim depreciation over that period from the purchase date. This applies to individual items, not bundles (e.g. a keyboard + mouse combo). Smartphones and Internet usage If you use a smartphone, tablet, or basic mobile phone for work, deductions can be claimed for the work-related portion of your call and data usage, as well as networking devices like a router or modem. Personal use cannot be claimed. It’s important to keep a record of how much you use your phone or Internet for work – generally over a four-week period. For example, if you use your home Wi-Fi 60% for work, claim 60% of the bill. Repairs and insurance You can also claim any repairs or insurance costs that are related to your work devices. Again, just ensure that these expenses are only connected to work usage. Source: ato.gov.au

Devices will decline in value over time and this depreciation can be claimed as an ongoing deduction. Don’t just spend to save – if the tech won’t support your income generation long-term, the ATO may question the claim. Ask yourself, “Would I still buy this if I didn’t work from home?”

Buy for the long-term by choosing tech that will serve your workflow for 2–3 years or more. Look for future-ready features such as USB-C ports, Wi-Fi 7, multi-device support, and AI enhancements. TOP TIP

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