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Claiming a computer as a tax deduction

If you use a piece of equipment, such as a computer, for work related activities then you may be able to claim it as a tax deduction. If the item is valued at over $300 then you cannot claim the entire cost in the year of purchase. Instead, you will need to calculate the depreciation in value each year.

When equipment is used for both professional and personal use, as computers so often are, then you can only claim a tax deduction for the equivalent portion that is used for professional purposes. For example, if you use the computer half for work and half for leisure then you may only claim half of the value of the depreciation of the computer as a tax deduction.

The ATO has indicated that it will be focusing on tech related expenses this year, with a particular focus on ensuring that individuals accurately report the work/personal breakdown of use. It is advisable to retain all documentation, including diary entries if necessary, relating to the use of a computer you are claiming as a tax deduction.

There are also other costs associated with a computer used for work purposes that can be used as tax deductions, such as the interest paid on a loan for a computer or the cost of repairs. Upgrades cannot be claimed as repairs and, if they cost over $300, should be included as a separate depreciating expense.

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What to consider when consolidating your super

August 27, 2020

The ATO reported that 45% of working Australians were not aware that they had multiple super accounts in 2016. Having multiple super accounts is particularly common for individuals who have had more than one job. If this is you, it is important to identify and manage your super accounts because having more than one can be costly as a result of account fees from multiple funds.To combat this, you may want to consolidate your super, which moves all your super into one account. Not only does this save on fees, but it also makes your super easier to manage and keep track of.

Before consolidating your super, it is important to do the following:

Research your funds’ policy
Compare your active super accounts so you can make the right choice about which one you should close. Things to assess include:

Check employer contributions
Changing funds may affect how much your employer contributes, as some employers contribute more to certain funds. Check your current accounts to see if changing funds will affect this. Once you have selected a super fund, regardless of whether you choose a new super fund or one of your existing ones, provide your employer with the details they need to pay super into your selected account.

Gather the relevant information
When consolidating your super, you will need to have the following details ready: