Claiming Tools on Tax

claiming tools on tax online tax return
Claiming a tax deduction for the cost of purchasing tools and equipment that you have used throughout the year to earn your income doesn’t have to be a nightmare anymore. Online Tax Australia can help you with any questions and advice with regards to what and how to claim these deductions.

Keep in mind that some tools and equipment may be used for both business and personal expenses. Apportioning the claimed amount is then required to reflect the accurate expense claim. For example, if you purchase a new laptop and use it for work and at home you simply adjust your claim to reflect how much you use the laptop for work related purposes, and how much it is used for private purposes.

Tools and equipment costing more than $300 cannot be expensed in one claim as the costs needs to be claimed progressively over the useful life of that asset (this is known as depreciation).

To make sure you secure the tax refund that you deserve, contact the friendly team of experts at Online Tax Australia.

When Tools and Equipment Expenses Are Allowed as Tax Deductions

You can claim the cost of any tools or equipment as a tax deduction:

  • If the tools and equipment contributed to your income during the financial year
  • If you have demonstrated that they are used for the purposes of work, rather than for private use
  • For items that cost less than $300, you can claim a deduction for their total cost
  • For items that cost more than $300 (or that are part of a set that together cost more than $300), you can claim a deduction for their decline in value year-on-year (depreciation)
  • For repairs and insurance costs related to tools and equipment
  • For upgrades to tools and equipment

Claiming Tools on Tax: What You Can Claim as Tool and Equipment Expenses

There are a number of standard items that can often be claimed as a tax offset on your tax return, including:

  • Computers and software
  • Desks, chairs and lamps
  • Filing cabinets and bookshelves
  • Hand tools and power tools
  • Protective items, such as hard hats and safety glasses
  • Professional libraries
  • Safety equipment
  • Technical instruments

What You Cannot Claim as Tool and Equipment Expenses

Much like all other tax expenses, you cannot claim:

  • Any tools or equipment that are not required to earn your income
  • The full cost of any tools or equipment that are also used for private purposes. A fair apportionment of the expense between business and personal use needs to be applied and substantiated.

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  1. Comfort that an experienced, professional tax agent checks every return before its lodged with the ATO.
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  4. Affordable, fixed price fee (which is completely tax deductible).
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  7. Free to try. No obligation. Should you complete a return and decide not to submit it for review and lodgement by us then no fee is payable.

Contact Online Tax Australia for All Your Tool and Equipment Expense Claims

If you’ve been searching for an experienced, professionally qualified, transparent accountant that understands all the ins and outs of tool and equipment expenses, then contact the friendly team at Online Tax Australia today: