As the End of Financial Year (EOFY) approaches, digital creators, remote workers and freelancers across Australia are eyeing tech purchases that might help reduce their tax bill.

With the 30 June deadline looming, it’s a critical time to get clear on what’s actually claimable, and what could trigger an ATO audit.

According to H&R Block’s Director of Tax Communications, Mark Chapman, the rules around tech deductions are clear: “Any tech purchases that you pay for and which aren’t reimbursed by your employer can be claimed for tax provided they are used for work purposes.”

Laptops, smartphones, monitors, routers, ergonomic chairs are all potentially deductible, as long as they’re used for work.

Mark Chapman

“If there is an element of private use of the tech item, the cost needs to be apportioned between work use and private use,” says Chapman.

To claim, you’ll need receipts and a clear method of apportioning usage, such as a diary. Tech items under $300 can be written off immediately. More expensive gear must be depreciated – two years for laptops, four for desktops.

Subscriptions for tools like Adobe Creative Cloud, Canva Pro or ChatGPT are also deductible if used for work.

“The rule of thumb is that any software purchased must be used in your job or business in order to be deductible,” says Chapman. Any personal use must be excluded.

Home office gear is also fair game, but documentation is key.

“If [items] are used in the course of your job or business, yes – these can be claimed,” Chapman confirms.

He warns that home office expenses are a particular focus for the ATO this year. Claimable items include:

  • Heating, cooling, lighting
  • Cleaning costs
  • Depreciation of office equipment
  • Internet and phone bills
  • Stationery and computer consumables

However, you can’t claim items like tea, coffee, or portions of rent or mortgage interest, unless you run a home-based business.

To claim accurately, Chapman says you must “keep all receipts, show how you’ve apportioned expenses, and keep a four-week diary of your working from home hours.”

Alternatively, you can use the ATO’s fixed-rate method of 70 cents per hour, but make sure you’ve recorded all hours worked.

Chapman stresses that poor record-keeping is the most common mistake: “If you don’t have the proper substantiation… you could be in trouble.”

Thinking about last-minute spending? Be strategic.

“Any tech item can be purchased but remember that for every dollar spent, you only get your tax back,” Chapman cautions. “It isn’t worth spending money purely to get the tax deduction. If you or your business genuinely need something – that’s fine – but otherwise, don’t do it.”

EOFY is a great time to get smart about deductions, but only if you follow the rules.