Laptop & Computer Equipment — New Zealand Tax Rules

Claim the cost of computers and peripherals immediately (low-value assets) or through IRD's depreciation schedule.

Claimable: Fully claimable · Tax authority: Inland Revenue

Inland Revenue Rules

• Items costing NZ$1,000 or less (GST exclusive) qualify as low-value assets and can be expensed in full in the year of purchase.
• Items over NZ$1,000 must be depreciated over their useful life using IRD's published depreciation rates.
• Computers and laptops are depreciated at 50% diminishing value (DV) or 40% straight-line (SL) — IRD's published rates for a 3-year estimated useful life (EUL).
• If used for both business and personal purposes, claim only the business proportion — apply the percentage to both the low-value expense or depreciation calculation.
• Peripherals (monitors, keyboards, mice, webcams, printers) follow the same rules as the computer itself.
• Software subscriptions and annual licences are deductible as operating expenses in the year charged — not depreciated.

Limits

Low-value asset threshold: NZ$1,000 (GST exclusive) per item — can be expensed immediately. Above NZ$1,000: depreciate over useful life at IRD's applicable rate.

Worked Example

Manu buys a NZ$2,400 laptop used 75% for business and a NZ$600 monitor used 100% for business. Laptop: NZ$2,400 × 75% = NZ$1,800 depreciable base. Year 1 at 50% DV: NZ$1,800 × 50% = NZ$900 depreciation claimed. Monitor: NZ$600 × 100% = NZ$600 (low-value asset, expensed immediately). Total 2024/25 claim: NZ$1,500.

Record Keeping

• Keep purchase receipts or tax invoices for all equipment
• Document the business-use percentage for any dual-use items with reasoning
• Maintain a depreciation schedule for items over NZ$1,000
• Record the date of purchase and opening cost for each asset
• If disposing of or selling equipment, record disposal proceeds for the depreciation schedule

Frequently Asked Questions

Should I use the low-value asset rule or depreciation for a NZ$950 laptop?

If the laptop costs NZ$950 or less (GST exclusive), use the low-value asset rule — expense the full business proportion immediately in the year of purchase. No depreciation schedule needed. This gives you the deduction immediately rather than spreading it over multiple years.

What depreciation rate does IRD use for computers?

IRD's published rates for computers and laptops are 50% diminishing value (DV) or 40% straight-line (SL), based on a 3-year estimated useful life (EUL). At 50% DV you claim 50% of the remaining book value each year — so in year one you claim half the cost, in year two half of the remainder, and so on.

Can I claim a gaming PC or high-spec workstation if I also use it for personal gaming?

You can claim the business-use proportion. If a workstation is 70% for client work and 30% for gaming/personal use, claim 70% of its cost (depreciated if over NZ$1,000). Keep a note of your usage reasoning — IRD may ask in an audit.

Is software installed on my computer claimed separately from the hardware?

Yes. Business software licences (Adobe, Microsoft 365, Xero) are a separate deductible expense. Perpetual licences may need to be depreciated if significant; most annual subscription fees are expensed directly. Claim software costs separately from the hardware depreciation.

How do I record computer depreciation in myIR when filing my IR3?

In myIR, you enter the total depreciation deduction for all business assets in the 'Expenses' section of your IR3. You calculate the depreciation figure yourself (cost × business proportion × IRD rate) and enter the total. Keep a depreciation schedule in your own records — a simple spreadsheet listing each asset, its opening value, rate, and annual deduction — in case IRD requests it.