If you're a business owner, or you manage a lot of your work from home, EOFY can be a stressful time of the year. Between organising your piles of receipts into some kind of presentable system; and remembering every office supply you've purchased in the last 365 days, it's easy to forget what is and isn't tax deductible.
As a leader of printing solutions in Melbourne since 1992, we've had more than the odd client ask about whether new, second-hand, or printer and copier rental costs are tax deductible.
While we always recommend seeking professional advice from your accountant or an ATO officer, we've compiled some relevant information on what you can claim as a business owner in relation to your office photo copier or printer.
For printer and copier advice for your situation, please get in touch.
How does your office or business environment need to be set up?
As a business owner, sole trader, or employee working from home, you can claim deductions for expenses relating to your business or work.
According to the ATO website, you can have three types of working from home environments:
- Home is your principal place of work and you have a dedicated work area that is unlikely to be suitable for domestic use
- Home is not your principal place of work but you have a dedicated work area – for example a study
- You work at home but you don't have a dedicated work area – for example, you use a room with a dual purpose such as a lounge room
What is the category for an office printer or copier?
An office printer or copier, whether it's new, second-hand or an ongoing rental cost, is a running expense for your business or work.
Other business expenses include work-related phone and internet expenses, the decline in value of a computer and occupancy expenses.
What can I actually claim?
If you work from home and you have a dedicated work area, you can claim the work-related proportion of your running expenses.
For example, you can claim up to $300 on a new, or refurbished printer or copier. You can also claim the decline in value for items over $300.
Any cost of repairs involved with your new, second-hand or rented printer is also tax deductible, although it is worth noting that Copysonic's ongoing care contracts and service agreements can cover the cost of ongoing maintenance, including toner refills.
Other running expenses involved in your printer or copier, such as printer paper, ink or toner, can also be claimed.
We recommend getting in touch with a professional financial advisor or accountant to calculate your work-related proportion of these tax-deductible expenses.
What about instant immediate write-offs?
Instant write-off thresholds use simplified depreciation rules. Assets costing less than the corresponding instant asset write-off threshold can be written off in the year they are first used or the first year they are installed to be ready to use.
This threshold applies whether or not the asset is purchased new or second-hand.
For example, if you purchase a $700 printer or copier which you only use for business purposes (regardless of whether it is a new or second-hand printer or copier), you can claim the entire cost of $700, as a small business entity. This can be applied when you complete your tax return.
Can I claim service or repair fees?
Any cost of repairs involved with your new, second-hand or rented printer is tax deductible.
Should you purchase from Copysonic, our service agreements can cover the cost of ongoing maintenance, including toner refills. You can chat to your accountant about the tax-deductible capabilities around this agreement, or get in touch with us and we'd love to help out.
Copysonic has been delivering photocopier and printing solutions to businesses around Melbourne for over 25 years. We're proud of offering tailored solutions for all business owners, big and small, providing models and payment plans that are specifically suited to your office needs.
Our experienced staff of technicians have over 15 years of experience and provide same-day service calls for repairs and toner refills. Office printer repairs and maintenance are also covered by a Copysonic service agreement.
If you need help choosing the right printer or photocopier for your business, get in touch with our friendly team.