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Tech products to buy in the EOFY sales to boost your tax return

More tech, less tax. Find out how to do it here:

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The above article has now been updated for 2020 :+1:

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Reminder (and in fact it is at the top of the linked article): while you can reduce your taxable income, this does not entirely offset the cost of whatever product you seek to purchase.

Any decision to claim a tax deduction needs to be made in the knowledge that falsely claiming (or over-claiming) a deduction is a criminal offence. If you are unsure whether an amount can be deducted seek advice from a tax professional.

The ATO is keen on documentation. Make sure you have it, and if not consider whether you should claim that deduction.

Finally, the ABC published an article last month about a new tax ruling that does help those of us who are working from home due to COVID-19. Again, make sure of your records.

Disclaimer: I am not a tax professional, and cannot provide advice specific to your needs.

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Or to emphasise that in a different way … the tax consequences of a purchase should never be the determining factor of whether to make a purchase. Make the purchase if it makes sense to purchase the item. The tax consequences are a bonus.

This is not bad logic whether it is a personal tax-deductible purchase or a business tax-deductible purchase or a personal or business investment. People can be seduced by the tax benefits without thinking enough about whether the item or investment is a good thing to spend money on or put their money into.

You should also be wary about letting the tax consequences influence the timing of a purchase. Sure, if you were going to make a tax-deductible purchase in the June/July timeframe anyway then it makes sense to do it in June rather than July. Once you get beyond a few months out for the potential timeframe then it may not even make sense to bring the purchase forward just for the tax benefits.

Disclaimer: I am not a tax professional or financial adviser and the above is not financial advice.

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