Don’t forget to claim these common tech deductions come tax time

As the end of financial year approaches, it’s time to think about tech expenses you can claim at tax time and if you should go on a last-minute shopping spree.

The EOFY Fairy has been very good to me over the years. Some years she splashes out on a shiny new MacBook Pro in June, while other years she’s much more conservative and only leaves a new ream of printer paper on my desk.

Not only does the EOFY Fairy love a bargain and have an eye for tech, she also understands that the lead-up to 30 June is the best time to spend up on things that you can claim on your tax. Wait until July and you won’t get that refund back from the tax man for another 12 months.

If you’re contemplating a major work-related tech purchase in the near future, it might be worth bringing it forward. Especially if you can get a good deal in the EOFY sales.

Of course, the EOFY Fairy doesn’t just think about big-ticket items like computers, smartphones and tablets. She also remembers the little things – stocking up on supplies for the year ahead like printer paper, toner cartridges and batteries. Paying subscriptions in advance also lets you claim them on your tax sooner rather than later.

Understand the tax time rules

Keep in mind that claiming something at tax time doesn’t make it free and you don’t get all the money back. It just reduces your taxable income, so you pay less tax and hopefully get a bigger tax return.

For example, if you earn $50,000 this financial year but claim $1,000 worth of expenses on your tax, then you’ll only pay tax on $49,000. That should save you $300 on your tax bill this year, because Australians will pay 30% tax on their earnings between $45,001 and $135,000 under the 2024/25 tax rates.

Some of the more common tech-related expenses that Australians can legitimately claim on their tax are mobile phones, laptops, desktop computers, printers and broadband modems, says Mark Chapman, Director of Tax Communications with H&R Block.

“If the item costs less than $300, it can be claimed in full immediately,” Chapman says.

“If it costs more than $300, it must be depreciated over its useful life – for instance, the ATO considers a laptop to have a two-year useful life.”

Don’t forget work from home tax time expenses

If you work from home, whether it be full-time or part-time, Chapman says you should be able to claim extra things on your tax. This includes stationery and consumables like paper and printer ink, along with depreciation on tech and office equipment including furniture. You can even claim a portion of utility bills like electricity, gas and internet.

To keep things simple, the tax man lets you claim a flat rate of 70 cents per hour worked at home on your 2024-25 income tax return, using the ATO’s fixed rate method. Alternatively, you might choose to claim each WFH item separately. It’s worth asking your accountant which is best for your circumstances.

Remember, to claim something at tax time you need to use it for work, at least some of the time. This requires calculating the “work-related portion”. For example, if you bought a laptop that is half for work use and half for personal use, then you can only claim 50% of the cost on your tax return.

If you’re unsure of what you can claim and how to calculate the work-related portion, it’s best to ask your accountant. 

“It’s common for people to forget to claim work-use portions of everyday tech, such as personal phones used for work calls, home internet used during remote work and small tech accessories like keyboards, headsets or chargers,” Chapman said.

Apart from thinking about your tax return, June is also a great time for financial spring cleaning. If you’ve been managing your finances using a jumble of spreadsheets and are ready to upgrade to a service like Xero, MYOB, Hnry or Quicken, the new financial year is a good time to make a fresh start.

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