Need to know
- Laptops, phones and other tech products often feature in the EOFY sales
- If you’re buying any of these to use for work, you can claim a deduction on your tax
- CHOICE regularly tests many tech favourites, so check our reviews before you buy
Bought any tech in the last year that you use for work? Or maybe you've got your eye on a new device that'll come in handy on the job?
As we approach the end of the financial year (EOFY), more than a few of us will be dreading the chore of doing our taxes.
But filing returns is an opportunity to reduce how much we owe in tax and maybe even get a refund, thanks to the opportunity to deduct expenses related to our job.
More than 10 million Australians (around 70% of the working population) claimed a work-related tax deduction last year and many also claimed costs they had incurred working from home.
With so many of us looking around for expenses to claim, plenty of retailers are already cutting prices on tech and other products lots of us use for work in order to boost their margins and clear stock before a new financial year.
Here, we look at some of the common work items you'll see marked down in the EOFY sales and explain how you may be able to claim these, along with work-from-home costs, as tax deductions.
On this page:
- What you can claim
- Laptops and tablets
- Smartphones
- Wireless routers and Wi-Fi mesh and extenders
- Printers
- Can you deduct the cost of working from home?
What you can claim
Unfortunately, tax deductions aren't exactly free money and don't equate to a dollar-for-dollar reimbursement in your tax refund.
Instead, they help reduce your taxable income, which is the figure the Australian Taxation Office (ATO) uses to determine how much tax you owe for the year.
More deductions leads to less taxable income, which can mean you'll owe less tax.
Costs you've had to pay to do your job count as deductions, but must meet the ATO's three golden rules:
- You must have spent your own money on something that directly relates to you earning an income.
- You can't have been reimbursed by someone else.
- You must have a record of your spending, such as a receipt.
The good news is if you buy an item for work (and not for running a business) and it costs $300 or less, you can claim the full amount as a single deduction in one tax return.
If you buy something that costs more, such as a laptop, you won't be able to claim it all in one go.
Instead you'll have to claim a proportion of the cost each year as the item depreciates in value over its lifetime.
The ATO has guides on how you can do this using one of its two recommended formulas, or you can use its depreciation and capital allowances tool, but in any case, you'll have to keep track of the product's original value and its effective life.
The tax office sets guidelines for how long various items are meant to last that you can use in your calculations (two years for a laptop, for example).
It's also important to note that if the item you bought is for both personal and work use, you should only deduct the percentage that reflects how much you use the product for work.
So, if you buy a $199 printer and 60% of the time you use it for work (and 40% is for personal printing), you can claim $119.40 as a deduction.
This rule applies whether the deduction is less than $300 and you're claiming it all in one year, or if it's more and you're deducting depreciation over several years.
For more info on how to work this out, see the ATO's guide to deducting assets over $300.
The myDeductions tool in the ATO app is also a useful resource for keeping track of expenses.
The EOFY sales are a good chance to buy work goods you can claim back on tax.
What you can't claim
The tax office says it often sees people trying to slip through outlandish claims in order to reduce their tax and says it'll be paying close attention to work-related and working from home deductions this coming tax season.
Last year, it uncovered attempts to deduct air fryers, TVs and $10,000 in luxury clothing and accessories by people for whom these purchases had little to do with work.
While few of us could claim we need these products to do our jobs, sometimes you do need to splash out on the latest entertainment or kitchen appliances – even if it won't be a tax deductible purchase.
For advice on these products and more, check out CHOICE product reviews.
Laptops and tablets
These work-from-home essentials are a regular fixture among EOFY bargain stock and grabbing one before the end of June could help end your tax year with a decent deduction.
"Retailers tend to have good EOFY deals, but most manufacturers also offer good prices if you buy directly from their websites," says CHOICE tech expert Peter Zaluzny.
"For example, brands such as Lenovo, Dell and HP typically have some sort of EOFY sale."
Once you've found a retailer offering good deals, think about what you'll be using your device for before throwing your cash at the latest models.
Laptop retailers will have sales, but also check manufacturer websites for discounts.
"You can save a bit of money by opting for a slightly older laptop released in the last couple of years," Peter says. "You probably won't notice much of a difference between a slightly older model and a newly released one if you're just emailing, browsing and streaming video."
It's also useful to remember that EOFY sales aren't the be all and end all.
"Keep an eye on stores throughout the year. Flash sales or brand-specific deals can sometimes offer better prices outside the typical sales periods," Peter suggests.
If you've managed to score a model you can use for work for less than $300, you can claim it as an immediate deduction.
However, it's no secret that most laptops (including those recommended by CHOICE) will sell for more than $300, even with an EOFY discount applied.
Therefore, it's likely you'll only be able to claim the depreciation of the device this financial year, but this could be more than $300 if you've bought a high-end device.
For more advice, see which sort of laptop will work best for you and get the lowdown on the best performers with our laptop and tablet reviews.
Smartphones
Buying a new phone you'll mostly use for work? You can claim a percentage of the cost at tax time in accordance with the method outlined previously (depending on the percentage you use it for work versus personal use).
But firstly, with all of Australia's major telcos having recently shut off 3G, make sure any phone you buy can run off the networks servicing your area.
Our tech experts expect discounts on at least some phone models this EOFY.
This means being wary of older 4G-enabled phones or refurbished models originally optimised for overseas markets.
While they're unlikely to feature in EOFY deals, some of these devices circulating in Australia have lost triple zero access after the demise of 3G.
Once you've found a suitable phone, it's important to consider if it'll meet your requirements for battery life, camera quality and providing other functions, such as serving as a Wi-Fi hotspot for other devices.
We consider these metrics and more in our latest smartphones review and have further advice on how to buy a good smartphone.
Wireless routers and Wi-Fi mesh and extenders
If you're setting up to work from home, you'll of course want all your gadgets working quickly and reliably with a fast wireless router for your Wi-Fi.
Routers usually have a range of around 50 metres in line of sight, but obstructions like walls and furniture can shorten this.
If you want a stronger signal at the edge of your Wi-Fi range, an extender or mesh network is what you're looking for.
Head to our guide to routers, mesh networks and extenders to understand what could work best in your home.
If you're looking for service for your new connections, check out our review of broadband providers.
Buying a printer at EOFY? Beware of the cheapest models.
Printers
These office mainstays often feature in EOFY markdowns, and having one on deck can come in handy, depending on your work.
But printers are also notorious for their high running costs (see our list of five surprising items cheaper than printer ink).
Therefore, while the cheapest printers might be tempting, beware of inefficient models and think about how much printing you'll actually be doing.
If you regularly run off documents at home, an ink-efficient model with a higher purchase price may work better for you, as it'll keep your ongoing costs lower.
But if you only print from time to time, then a cheaper printer could suffice, as you won't be buying new cartridges very often.
To see which models deliver the best print quality and how much each will cost you annually in ink, see our printer reviews.
Can you deduct the cost of working from home?
If you work from home, you can also claim any extra costs resulting from you spending more time in your house.
The ATO allows you to claim a flat rate of 70 cents per hour that you worked from home, to cover extra use of things like electricity and gas, as well as internet data, stationery and computer consumables, such as printer ink and paper.
Alternatively, you can calculate the actual cost you've incurred (in case it's more than 70 cents per hour or you want to factor in depreciating assets), but this will require lots of number-crunching and record-keeping.
If you're making these sorts of deductions, you'll need records of how many hours you worked from home and evidence you paid for the extra strain on your home facilities.
For specific information on how to process your working at home deductions, see the ATO's working from home expenses guide.
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