Computers, laptops and software

Eligibility to claim computers, laptops and software

Computers and laptops are generally depreciating assets which decline in value over the time you use them.

If when you buy a computer, it includes software as part of the purchase price, you don't need to break up the costs to calculate the decline in value. However, if you buy additional software, or it is sold separately you may need to calculate its decline in value.

To claim a deduction for computers and laptops and software expenses:

• You must incur the cost and use the item to perform your work duties.
• You must work out if you can claim the cost of the item in the income year you buy it or the decline in value over its effective life.
• You must have a record of your expenses and use of the item.

When you use the items for both private and work purposes, you need to apportion your deduction. You can only claim the work-related use of the item as a deduction.

You can also claim the work-related portion of:

• costs you incur to repair and insure these items
• interest expenses you incur on money you borrow to buy these items.

What you can't claim

You can't claim:

• your use of computers, laptops or software for private purposes
• expenses for computers or laptops where someone else supplies the item for your use.

Types of devices you can claim

You can claim a deduction for a device you buy and use for work, such as a:

• laptop
• desktop computer or personal computer (PC)
• monitor
• printer.

You can also claim the cost of peripherals such as a mouse, keyboard, docking station or cables (if you buy these separately).

Types of computer software and programs you can claim

You can claim the cost of associated computer software or programs that you use for work, such as:

• physical CDs or apps you buy for your device
• subscriptions
• anti-virus and anti-spyware software
• virtual private networks (VPN).

How to calculate your deduction for computers and laptops, and software

How you treat and work out your deduction will depend on if it cost:

• $300 or less
• More than $300.

You need to apportion expenses if you use the computer for both work and private purposes.

You claim the deduction in your tax return as other work-related expenses. For instructions on how to complete your tax return, see Lodgment options for preparing your tax return.

$300 or less

An immediate deduction is available for items that cost $300 or less, if you use them more than 50% of the time for a work purpose. You must satisfy the conditions of 4 tests to claim an immediate deduction.

More than $300

You can claim a deduction for the decline in value over the effective life of the item, if the item cost more than $300.

Calculating your deduction

Work out your claim for the decline in value for a depreciating asset, using our Depreciation and capital allowances tool.

Depreciation and capital allowances tool

You can manually calculate the decline in value of a depreciating asset using either the prime cost method or diminishing value method.

Keeping records for computers, laptops and software

You must keep records to support your claim for work use of computers, laptops and software, such as:

• receipts for items you buy
• evidence that you need to use the item for work purposes
• a diary or similar record that shows how you work out your percentage of work-related use.

If you are claiming the decline in value of an asset over its effective life, you also need to keep records that show how you calculated decline in value.

For more information on general record keeping requirements and formats, see records you need to keep.