Laptop & Computer Equipment — Australia Tax Rules

Claim the cost of computers and peripherals as an instant asset write-off or depreciation.

Claimable: Fully claimable · Tax authority: ATO

ATO Rules

• Small business entities (turnover under $10 million) can instantly deduct assets costing less than A$20,000 per asset (2024/25 threshold).
• If used for both work and personal purposes, claim only the work-related proportion under whichever method applies.
• Assets above A$20,000 are depreciated over their effective life — computers: typically 4 years.
• Non-small-business sole traders can claim an immediate deduction for items under A$300, regardless of turnover.
• Peripherals (monitors, keyboards, webcams, printers, external drives) follow the same rules as the main computer.
• Software subscriptions (Microsoft 365, Adobe Creative Cloud) are fully deductible as operating expenses in the year they are incurred.

Limits

Instant asset write-off: A$20,000 per asset for small businesses (2024/25). Others: under A$300 immediate; over A$300 depreciate over 4 years.

Worked Example

Sophie buys a $2,800 laptop used 80% for work. As a small business entity she claims $2,800 × 80% = $2,240 as an instant deduction (under A$20,000). She also buys a $350 monitor used 100% for work — instant deduction of $350. Total: $2,590.

Record Keeping

• Keep purchase receipts and tax invoices for all equipment
• Document the work-use percentage for dual-use items
• Record the date of purchase — ATO requires the asset to be installed ready for use by 30 June
• Maintain a depreciation schedule for assets above the instant write-off threshold
• Keep records for 5 years after the deduction is claimed

Frequently Asked Questions

What is the instant asset write-off threshold for 2024/25?

For 2024/25, small businesses (turnover under $10 million) can instantly deduct eligible assets costing less than A$20,000 each. The full business-use proportion is deductible in the year of purchase, provided the asset is first used or installed ready for use before 30 June 2025.

Can I claim a gaming PC used partly for work?

Yes, but only the work-related proportion. If the PC is used 50% for gaming and 50% for work, claim 50% of the cost. Document your work-use percentage estimate.

What about software subscriptions?

Software subscriptions (Microsoft 365, Adobe CC, Xero) are fully deductible as operating expenses in the year incurred — they are not capital items and do not need to go through the instant write-off rules.

Can I claim a second monitor or mechanical keyboard?

Yes. Peripherals are treated the same as the main computer. Under A$300 each: claim immediately. Over A$300 and you're a small business: claim under the A$20,000 instant write-off. Over A$300 and not a small business: depreciate over the effective life. Apply the work-use proportion.