Short Direct Answer
Yes — a laptop is tax deductible in Australia if you use it for work purposes. However, how you claim it depends on whether you are an employee or a sole trader, how much the laptop cost, and what percentage of your use is work-related. You cannot claim 100% of a laptop if you also use it for personal browsing, Netflix, or family use.
Detailed Explanation
Employee vs Sole Trader
The ATO (ATO guidelines) treats laptop deductions differently depending on your status:
- As an employee: You claim the laptop under 「other work-related expenses」 in your individual tax return. The deduction is limited to the work-use percentage.
- As a sole trader or small business (aggregated turnover under $10 million): You may qualify for the $20,000 instant asset write-off in FY2025-26, allowing you to immediately deduct the business portion of the laptop.
The $300 Rule for Employees
For employees, the ATO draws a line at $300:
| Cost | How You Claim | Example |
|---|---|---|
| $300 or less | Immediate deduction in the year of purchase | A $280 monitor used 80% for work → claim $224 |
| More than $300 | Decline in value (depreciation) over effective life | A $2,000 laptop → depreciate over 2 years |
ATO Guidelines: For items costing $300 or less, you must satisfy 4 tests — the item must cost $300 or less, be used mainly (more than 50%) for work, not be part of a set costing more than $300, and not be one of several identical items bought in the same year that together cost more than $300.
Because most laptops cost well over $300, the vast majority of employees will need to depreciate their laptop over its effective life.
Depreciation Methods
For laptops costing more than $300, the ATO assigns an effective life of 2 years. You can use one of two methods:
- Prime Cost (Straight-Line): Cost ÷ 2 years. A $2,000 laptop = $1,000 deduction per year (× work-use %).
- Diminishing Value: Base value × (days held ÷ 365) × (200% ÷ 2 years). This front-loads the deduction into the first year.
Calculation Example
Sarah buys a MacBook Air for $2,200 in August 2025. She uses it 70% for her graphic design job and 30% for personal use. She holds it for 320 days in FY2025-26.
Prime Cost method:
- Annual deduction: $2,200 ÷ 2 = $1,100
- Prorated for days held: $1,100 × (320 ÷ 365) = $964
- × 70% work use = $675 deduction
Diminishing Value method:
- First year rate: 200% ÷ 2 = 100%
- $2,200 × (320 ÷ 365) × 100% = $1,928
- × 70% work use = $1,350 deduction
Sarah chooses the diminishing value method to maximise her first-year deduction.
$20,000 Instant Asset Write-Off (Small Business)
If you run your own business with turnover under $10 million, the FY2025-26 instant asset write-off lets you immediately deduct the business portion of any asset costing less than $20,000. A $2,200 laptop used 70% for business = an immediate $1,540 deduction — no need to spread it over multiple years.
What About FBT?
Laptops provided by your employer are generally FBT-exempt under the work-related portable electronic device exemption — provided the laptop is primarily used for work. You cannot claim a personal deduction for an employer-provided laptop since you did not pay for it.
What Records Do You Need?
| Record Type | Why You Need It |
|---|---|
| Purchase receipt | Proof of cost and date |
| Work-use diary/log | Shows how you calculated your work-use % |
| Employment contract or letter | Shows the laptop is required for your job |
| Depreciation schedule | If depreciating over multiple years |
Common Mistakes to Avoid
- ❌ Claiming 100% of a laptop you use for personal browsing or streaming
- ❌ Claiming the full cost in year one as an employee (unless you meet the $300 rule)
- ❌ Not keeping a work-use diary — the ATO expects evidence, not just an estimate
- ❌ Claiming an employer-provided laptop (it's already covered by FBT exemption)
Quick Checklist
- I purchased the laptop myself (not provided by my employer)
- I use it for work purposes
- I have calculated my work-use percentage (e.g., 70% work / 30% personal)
- I have kept the purchase receipt
- I have a diary or log documenting my work use
- I have chosen the right method: $300 rule, depreciation, or instant asset write-off
- I know my laptop's effective life is 2 years (ATO)
Need Help With Your Tax Return?
Complex situation? a registered tax agent (see the directory) Our partner agents review every detail for accuracy and compliance.
*Disclaimer: This is general information only and does not constitute personal tax advice. Consult a registered tax agent for advice tailored to your specific situation. Always verify against the latest ATO guidelines at ato.gov.au.*
*Disclaimer: This article provides general information only and does not constitute tax advice. Individual circumstances vary. Consult a registered tax agent or the ATO directly for advice specific to your situation.*