Claiming Computers and Software

(last updated 1/04/2014)

You can claim a deduction for the work related proportion of depreciation on the cost of computers. If you use your computer for private purposes you must apportion your depreciation amount between work related and private use.

You can also claim a deduction for the work related proportion of the cost of repairs to your computer and interest on money borrowed to finance its cost.

Costs incurred in acquiring, developing or commissioning computer software are depreciable and deductible over 2 ½ years at the rate of 40 per cent per year for the part of the year you owned the software. However, you may be able to immediately claim such costs in full where you incurred them:
  • before 1 January 2000 and for the principal purpose of ensuring that an existing computer system is year 2000 compliant or
  • in acquiring one copy of a particular unit of software during the current year, and its cost was less than $300 or
  • in acquiring more than one copy of a particular unit of software during the current year, and the total cost of all the copies you acquired was less than $300.
In all cases, you must apportion your claim between work related and private use.

See this post for details and a checklist of Low Value Pool Depreciation.

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