Depreciating Assets Deduction: Who Qualifies and What You Get
Learn how tradespeople can claim an immediate deduction for tools used for work in Australia.
This scheme allows certain workers to claim the cost of small tools as an immediate deduction when they buy them for work.
Who it's for
This is designed for tradespeople who purchase tools specifically for their professional work.
What you get
If you buy a tool that costs under $300, you can claim the full cost as an immediate deduction. This is often referred to as a tax write-off, allowing you to reduce your taxable income by the amount spent on that equipment.
What it costs you
There is no fee to access this deduction, but it does require you to be organized. You must keep all your receipts and documentation for every purchase to prove the expense.
The catch to know
You can only claim the portion of the tool's cost that relates to your work. If you use a tool for both professional tasks and personal hobbies, you must calculate the specific percentage used for work and only claim that amount.
How to apply
- Keep all physical or digital receipts for every tool you purchase.
- Calculate the percentage of use that is strictly for work purposes.
- Report the total amount as a deduction when you file your tax return.
- Visit the official portal for more details: https://www.ato.gov.au