If you buy tools, equipment or other assets to help earn your income, you can claim a deduction for some or all of the cost.
If the tools are used for both work and private purposes you will need to apportion the amount you claim. If you have a computer that is used for private purposes for half of the time you can only deduct 50% of the cost.
The type of deduction you claim depends on the cost of the asset:
- For items that don't form part of a set and cost $300 or less, or form part of a set that together cost $300 or less, you can claim an immediate deduction for their cost.
- For items that cost more than $300, or that form part of a set that together cost more than $300, you can claim a deduction for their decline in value
Examples of tools, equipment or assets:
- computers and software
- desks, chairs and lamps
- filing cabinets and bookshelves
- hand tools or power tools
- protective items, such as hard hats, safety glasses, sunscreens and sunglasses
- professional libraries
- safety equipment
- technical instruments.
You can also claim the cost of repairing and insuring your tools and equipment and any interest on money you borrowed to purchase these items.
If you use items for both personal and work-related purposes you need to keep records, such as a diary, so that, if requested, you can show how you apportioned the amount of private use and work-related use.