How to claim for Tools for work

Are you providing you own tools for work? You might be able to claim them on your Tax Return. Tools can include many things, for example;

  • hammer,
  • spirit level,
  • shovel,
  • computers & software
  • calculator,
  • filling cabinets and bookshelves,
  • professional libraries,
  • safety equipment,
  • anything that allows you to complete your work.

You can claim a deduction for tools, equipment, and assets you use to earn your income. If you also use these tools for personal use, a proportion will be reduced to equal the personal usage.  My clients often ask how much can I claim? If you purchase a tool for more than $300 you must depreciate this cost, which means you get a deduction for that tool over a few years. If the tool cost less than $300 you can claim this 100% in that year. However you must have a receipt to be able to claim. There is no limit you can claim without receipts for this deduction, so the more receipts you keep the more you might be able to claim.  You might also be able to claim other expenses in relation to these tools, like insurance on the tools, or repairs and maintenance of the tools. Receipts and records are needed to claim these expenses.  Talking to your Tax Agent will highlight more of what you can claim. I am often discussing with clients about their job and what tools they use to figure out the maximum deductions for them. If you need a Tax Agent to find some deductions for you, get in touch today.