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Correctly claiming tools and equipment

Planning on claiming a deduction for tools and equipment this tax time? Here’s a guide to help you get your deductions right.

Eligibility: to claim a deduction for tools or equipment, you must use the tools for work-related duties. 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.

Types of tools you can claim: depending on your job, you might be able to claim a deduction for hand and power tools, cameras, musical instruments, safety gear, technical instruments, electronic devices, computers, software, office furniture and more.

Calculating your deduction: tools and equipment depreciate over time. For items that cost $300 or less, you can claim an immediate deduction for the whole cost. For items over $300, or sets totalling more than $300, you can claim a deduction for the cost over a number of years (decline in value). Check out the ATO’s depreciation tool to help you work out your claim.

Records: remember to keep track of your receipts and provide a diary or similar record to show how you worked out your percentage of work-related use.