Can I claim an immediate deduction for tools and equipment under $300 in Australia?

Yes. If you purchase work-related tools or equipment that cost A$300 or less (excluding GST if you are registered for GST), you can claim an immediate deduction for the full cost in the year of purchase — no depreciation required.

Conditions for the A$300 immediate deduction:

• The item must cost A$300 or less
• You must use it predominantly (more than 50%) for work purposes
• The item must not form part of a set purchased together that together cost more than A$300 (you cannot split a set to get each piece under the threshold)

Items over A$300: For equipment costing more than A$300, you generally cannot claim the full cost upfront as an employee. Instead, you claim the decline in value (depreciation) over the asset's effective life. For example, a laptop with a 3-year effective life worth A$1,800 used 80% for work would give you a deduction of A$480 per year (A$1,800 × 80% ÷ 3 years).

Low-value pool: Items with a cost between A$301 and A$1,000 (that do not qualify for immediate deduction) can be placed in a low-value pool and depreciated at 37.5% in the first year and 75% thereafter, which accelerates the deduction compared to the standard effective life method.

Examples of deductible work tools: Tradespeople can claim drills, saws, and hand tools. Teachers can claim materials and educational resources. Office workers can claim headsets, keyboards, or computer accessories if used for work.