Good news if you’re heading to the end-of-year sales!
You can claim a deduction on a handbag, laptop bag, briefcase or luggage that you use for work.
Of course, it needs to be used for work purposes (for example to carry your laptop, diary, notebooks, and files) for a percentage of the time you have it, and it should be practical and reasonable.
If you use the bag only for work and it costs less than $300, you can claim an immediate deduction, if it’s over $300 you can claim it over time as a depreciating asset.
If you use the bag for work and private items, you need to apportion the expense between work-related and private use, and you can only claim the work-related portion.
Here’s an example from the ATO website:
Theresa buys a large handbag for $280 to replace her current handbag, as she must now take a small laptop and client paperwork to and from work and to client meetings. She also uses her new handbag to carry personal items.
Theresa works out she is using the new handbag 70% for work purposes.
Theresa works out her deduction as $196 ($280 × 70% work use).[1]
If you’re like my colleagues and just love stationery, you’ll be pleased to know that you can also tax deduct your diary, calendar and any stationery that you use for work.
If you’re not sure if something is a work-related deduction, check with your accountant. Be sure to keep all your receipts.
Comments