By PowerBuy // 1 June 2014 // Related Categories: Tips

With the End of Financial Year upon us it’s time to brush up on your IT depreciation knowledge to reduce the tax bill.

Claim 100% depreciation on smaller assets

Any computer, device or peripheral that costs less than $1,000 can be depreciated in the year of purchase. The tablet you wanted, that new phone or laptop for $999 just became the quickest way to reduce your tax liability.

Some popular ways to spend $1,000 on IT this financial year are as follows:

  • Replace all those Windows XP machines as they are no longer supported by Microsoft and are a risk to our businesses, not to mention being old, slow and annoying.
  • Upgrade a firewall or buy new wireless access points with improved range, speed and security.
  • Add a second or third screen to your PC to improve efficiency when working in multiple documents or applications. Similarly adding a docking station to a laptop can save time and reduce frustration, having one on the desk at work and another at home is even better.

Claim accelerated depreciation on larger assets

It’s also a great time to invest in larger equipment. If you are contemplating a server or expanding your storage systems with more hard drive space then now is a great time to invest and take advantage of quick wins on depreciation especially of the services required for installation on these larger projects.  IT assets costing more than $1,000 are eligible for an accelerated depreciation deduction of 15% for the first year and 30% for each year after.

Dig up your receipts!

If you are an SME with under $2 Million Turnover and you purchased assets with a value of less than $6,500 and had them installed between 1 July 2013 and 31 December 2013 you can write the entire purchase off in one go in this tax return.

When it comes to financial advice always confirm the rules with your accountant or tax advisor and make sure these deductions apply to you.


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