If you’re wondering how to claim depreciation in Australia, you’re in the right place. Many Australians don’t realise they can claim a depreciation deduction for work-related assets that lose value over time — things like laptops, tools, or even furniture in a home office.
Depreciation is the Australian Tax Office’s (ATO) way of recognising that these items wear out, become outdated, or lose value, and it can mean more money back in your pocket at tax time.
With One Click Life, claiming depreciation in your individual tax return is simple and stress-free.
What is Depreciation?
Depreciation is a tax deduction for the decline in value of an asset used to earn income across its effective life. Instead of claiming the full cost in the year you buy it, you spread the deduction over its effective life — the time the ATO says the asset will last.
For example:
If you purchase a Laptop worth $1,200 in August 2025 that you use 50% of the time for work:
- A laptop must be depreciated over two years.
- You claim part of its cost each year until it’s fully depreciated.
| Income year | Opening Adjustable Value | Decline in Value | Taxable Use | Deductible Decline in Value |
| 2025-2026 | $1,200.00 | $540.82 | 50% | $270.41 |
| 2026-2027 | $659.18 | $600.00 | 50% | $300.00 |
| 2027-2028 | $59.18 | $59.18 | 50% | $29.59 |
Common Work-Related Assets You Can Claim
When learning how to claim depreciation in Australia as an individual, it’s important to know which assets are eligible. These may include:
- Electronics: laptops, tablets, smartphones, printers.
- Office furniture: desks, ergonomic chairs, filing cabinets.
- Tools of trade: hammers, drills, toolboxes.
- Protective equipment: helmets, safety gear, specialised clothing.
(You can only claim the portion of an asset used for work — personal use isn’t deductible.)
Claiming Assets Under or Over $300
The ATO applies special rules based on the cost of your asset:
Assets $300 or Less
- If an asset costs $300 or less and is used 100% for work, you can claim the full cost immediately in the year you buy it.
- This applies to each individual item, not a group of items bought together.
Example: A $250 office chair bought exclusively for work can be fully claimed this year.
Assets Over $300
- If the asset costs more than $300, you generally need to claim depreciation over its effective life.
- You can choose between:
- Diminishing value method: bigger deductions in the early years.
- Prime cost method: equal deductions each year.
Step-by-Step: How to Claim Depreciation in Your Individual Tax Return
- Work out the asset’s total cost — include the purchase price, delivery, and setup.
- Determine your work-related use percentage — only claim the portion used for work.
- Enter details into One Click Life — our platform calculates your deduction for you automatically.
- $300 or less? Claim in full in the same year.
- Over $300? Depreciate over its effective life.
Example for an Individual Tax Lodgement
Taylor buys:
- A $200 headset used exclusively for work calls — claimed in full this year.
- A $1,000 monitor used 80% for work — depreciated over 4 years, claiming $200 per year.
Taylor enters these into their One Click Life return and both are claimed correctly.
Why Knowing How to Claim Depreciation in Australia Matters
Depreciation deductions lower your taxable income, which can mean less tax to pay or a bigger refund. Over time, claiming eligible work-related deductions can add up to hundreds or even thousands of dollars in savings.
💡 Tax tip: Keep receipts, invoices, and records of how you use your assets for work — the ATO may ask for evidence.
Make Depreciation Easy With One Click Life
You don’t have to figure out how to claim depreciation in Australia by yourself. With One Click Life, simply enter your asset details and we’ll apply the correct rules — from the $300 threshold to effective life calculations — so you claim every dollar you’re entitled to.