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Key Takeaways
- If you use your own laptop or computer for work, you may be able to claim a tax deduction
- The ATO requires you to calculate your work-use percentage before claiming.
- Most people need to claim depreciation over time rather than a one-off deduction.
- There are two ways to claim work-from-home expenses, and both let you claim your laptop separately.
- Good records, including receipts and a usage diary help support your claim.
Many of us work after hours at home or spend part of our week working from home. If you use your own equipment for this, especially if you don’t have a work laptop or removing it from the office poses a security risk, you may be able to claim a portion of your personal computer costs as a deduction on your tax return.
How to claim a laptop on your tax return
Unless you use the laptop 100% for work, you’ll need to calculate your work-use percentage, and then claim that percentage of the depreciation on your tax return.
How to calculate your work-use percentage
Keep a diary of your computer or laptop use for four continuous weeks and record the time spent on it for both work and personal use. You can then work out what percentage of your computer use is work related.
Here’s an example:
Georgie keeps a diary of her personal laptop use for four weeks. She calculates that her total computer use was 94 hours: 63 hours for work and 31 hours for personal use. To calculate her work-use percentage:
63 hours / 94 hours = 67.02% work related.
This means Georgie can claim 67.02% of the laptop costs for the year.
What is the depreciation rate for a laptop or computer?
The ATO sets the effective life of a desktop computer at four years and a laptop at two years. This means you claim the purchase price of the computer over multiple years rather than all at once.
Under the most common depreciation method, the prime cost method, this works out to 50% of the value per year for a laptop, and 25% per year for a desktop.
Can you claim an immediate tax deduction or do you need to depreciate it?
If your computer cost under $300, you can claim an immediate tax deduction for the work-use percentage of the purchase price. The same goes for any work-related software you purchase.
If your computer cost $300 or more, you can only claim the depreciation over the effective life of the equipment.
Where to claim your laptop on your tax return
The Etax.com.au tax return makes it very easy to claim your computer’s depreciation each year.
Simply add the ‘Computer / Laptop’ deduction section to your return and enter your computer’s purchase price and work-related percentage. Our accountants will do the rest.
Can you claim your laptop and work-from-home expenses?
Yes, both the work-from-home expense methods, the actual cost method and the 70 cents per hour fixed rate method, allow you to claim your laptop or computer separately to boost your tax refund. Read about claiming work-from-home expenses here.
TIP: The Actual Cost Method will generally give you a better refund. In addition to your computer use, you can also claim a tax deduction for internet and mobile phone use as well. Work out what percentage of your internet and phone use is for work and claim that percentage of each bill as a tax deduction.
What if you hire or lease your computer?
You can still claim your computer expenses if you lease or pay a monthly fee for your device. Instead of the purchase price, claim the work-related portion of the lease payments on your tax return.
What records do you need to keep?
Most employers now provide staff with a company laptop or reimburse them for purchasing their own device. When claiming a computer as a tax deduction, you can only claim it if you paid for it yourself, have a receipt, and your employer didn’t reimburse you.
Frequently asked questions
Yes, if you use your own laptop for work and your employer did not reimburse you, you can claim a deduction. The amount depends on your work-use percentage and the cost of the device.
The ATO sets the effective life of a laptop at two years and a desktop computer at four years.
If your laptop cost under $300, you can claim the full work-use percentage as an immediate deduction. If it cost $300 or more, you must depreciate it over its effective life.
Yes. You need a receipt as proof of purchase. You also need diary records showing your work-use percentage, kept for at least four continuous weeks.
Yes. Both the actual cost method and the fixed rate method (70 cents per hour) allow you to claim your laptop separately as an additional deduction.
You can claim the work-related portion of your lease payments as a deduction instead of depreciation.
Yes. You can claim work-related software purchased for under $300 as an immediate deduction, just like a computer under the same threshold.
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