Private ruling: Deductions for depreciable assets
Date of advice: 16 March 2017
Published: August 2017

Ruling: Q1: Are you entitled to a deduction for the work related portion of your computer software to enable you to receive emails from your employer? | A1: Yes | Q2: Are you entitled to a deduction for the work related portion of a GPS vehicle navigation device? | A2: Yes

Relevant facts and circumstances: You work as a meter reader Your employer requires you to receive emails for work purposes You are expected to locate and read meters in new housing estates.

Relevant legislative provisions: Income Tax Assessment Act 1997 Division 40 | Income Tax Assessment Act 1997 Subsection 40-25 (1) | Income Tax Assessment Act 1997 Subsection 40-80 (2)

Reasons for decision: Detailed Reasoning - Computer Software: You are allowed an immediate deduction for the purchase of computer software because it is a depreciable asset with a value of $300 or less and are not part of a set of assets or one of a number of substantially identical assets that cost over $300. You need this software to enable you to receive emails on your home computer from your employer. However, if you use the software for both work and private purposes you must apportion the amount you claim. | Detailed Reasoning - Portable GPS navigation device: You are allowed an immediate deduction for the purchase of GPS navigation device because it is a depreciable asset with a value of $300 or less and are not part of a set of assets or one of a number of substantially identical assets that cost over $300. You are required in your job to locate addresses. However, if you use the GPS navigation device for both work and private purposes you must apportion the amount you claim.