Claiming a Laptop on Tax Whilst Studying?

Morphio25 on 14/03/2024 - 16:46
Last edited 14/03/2024 - 16:55 by 1 other user

Hi OzBargain, I bought a laptop in January 2023 to enable me to complete TAFE studies.

It randomly occurred to me that maybe this is something I could've claimed on tax.

I am aware that I would have to amend my previous tax return as opposed to simply including it on the upcoming return.

My question is can I claim it?

I am studying an IT course though I am not currently working within the IT industry. The course I am doing however is with an area that the Government has recognised there is a skills shortage and hence I am studying for free. I am thinking that potentially I can claim it as a study deduction as I can show that completion of that study could potentially lead to employment. This is the same thing I used to do with Cisco exams when the company I was working for decided to stop paying for them.

Thoughts?

Poll Options

  • 1
    Yes, you can claim
  • 44
    No, you can't claim
Financial Computer Laptop

Comments

  • Tyrx on 14/03/2024 - 16:52
    +11

    No. You can't claim a deduction for an expense if it's not directly related to earning an income through your current work activities.

  • Dollar General on 14/03/2024 - 16:55

    No.

    Even if you could claim it or depreciate it, probably only get back enough for a large zinger box

    • filmer on 14/03/2024 - 17:06

      Obviously everyone uses their Laptop/PC for 100% work use only, right? Though if they're studying they'd probably be in the 19c bracket. That's still a good 10 zinger boxes.

  • c64 on 14/03/2024 - 17:05

    maybe you can claim depreciation if you are still using it only for work purposes once you start work

    • bemybubble on 14/03/2024 - 17:07

      You can. You’re taken to have acquired it at market value at that point though. Might be minimal given how quickly they depreciate…

  • happydude on 14/03/2024 - 17:10
    +2

    I am not currently working within the IT industry

    This rules you out. You would need a job that directly relates to the course. An IT job and IT course is not enough in its own right. See example from the ATO website:

    Louis is a computer science student who works at the university laboratory installing computers. The course and the job are generally related, and what Louis learns might help him in his job.

    However, the high-level professional skills Louis acquires from his studies are well beyond the skills he requires for his current job. There isn't a sufficient connection between his current employment income and his course so Louis can't claim a deduction for his self-education expenses.

    https://www.ato.gov.au/individuals-and-families/income-deduc…

  • sumyungguy on 14/03/2024 - 17:14

    ATO advice here but entirely up to you when lodging via myTax. What job these days doesn't rely on IT?

  • dtc on 14/03/2024 - 17:36

    If you are receiving Youth Allowance or AuStudy, you can claim study expenses

    Under section 82A of the ITAA36, the first $250 of your self-education expenses are not deductible.

  • jv on 14/03/2024 - 17:37

    Claiming a Laptop on Tax Whilst Studying?

    Nope…

  • Typical16-bitEnjoyer on 14/03/2024 - 18:19

    Yes.

    …I mean, no. awkward chuckle

  • JimmyF on 14/03/2024 - 18:42
    +1

    I am studying an IT course though I am not currently working within the IT industry
    My question is can I claim it?

    You need a taxable income to make a 'claim' against. So in your case, no you can't claim it as you are not working in IT.

    It's also not 100% back of what you spent, you get the tax paid back on that income you got to pay for it. So around 30% for most people. So your $2k laptop would get back ~$600 on your tax. But being a laptop, you might have to do this over a few years too.

    So you're not really missing out on much.

  • AustriaBargain on 14/03/2024 - 19:08

    I am not currently working within the IT industry

    Then no, absolutely not. You are not using that laptop or undertaking these studies to enhance an existing career. If you registered as a sole trader in IT before studying and buying that laptop you may have had a better claim, provided you can prove you are actively soliciting work. In truth though the ATO will never audit a small trader with less than a few thousand income. But if they did you wouldn't want to be caught committing a crime.

  • BewareOfThe Dog on 14/03/2024 - 22:24

    What was the response from your accountant?

    • Morphio25 on 15/03/2024 - 19:18

      See the above responses ;)

  • Morphio25 on 15/03/2024 - 19:19

    Thanks for the responses and clarification everyone.

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