How do I claim a computer or laptop as a business expense in Australia?

Computers and laptops are considered 'depreciating assets' by the ATO. How you claim them depends on the cost: 1. **Cost $300 or less:** You can claim an immediate deduction for the full business-use percentage of the cost in the year you buy it. 2. **Cost more than $300:** You must claim the deduction over several years (decline in value). The 'effective life' for a laptop is typically 2 years, and for a desktop, it's 4 years. **Instant Asset Write-Off:** Small businesses (including sole traders) may be eligible for simplified depreciation rules. For 2024-25, the government has proposed a $20,000 instant asset write-off threshold for small businesses with turnover under $10 million, allowing immediate deduction for assets costing less than $20,000 (check latest status as this is subject to annual legislative updates). Remember to only claim the business-use percentage if you also use the computer for personal tasks.

• Immediate deduction if cost <= $300
• Assets > $300 usually depreciated over several years
• Check 'Instant Asset Write-Off' status for higher thresholds (e.g. $20k)
• Laptops typically have a 2-year effective life for tax purposes
• Only claim the business portion of the cost