Read this before buying tech at tax time

To start with a recap on the basics of tax deductions: they help to lower your taxable income, which in turn reduces the amount of tax you owe. To be deductible, an expense must meet the Australian Taxation Office’s (ATO) criteria, along the following lines:

• Relates directly to work: The expense must be directly related to earning your income.
• No reimbursement: You must have paid for it yourself without reimbursement.
• Record keeping: Keep a record of your spending, like a receipt.

 

You probably already know that for items costing $300 or less, you can claim the full amount in one tax return. For more expensive items, the advice is that you’ll need to depreciate the cost over several years. If you use the item for both personal and professional purposes, only the work-related portion is deductible.

So, how can you make the most out of EOFY tech buying opportunities…? Here’s some tips to bear in mind.

1. Do your homework on laptops and tablets

A reliable laptop or tablet is crucial for managing patient records, scheduling, and research; and EOFY sales are a perfect time to buy.

 

Do your homework on how compatible the device is with any integrated software. Research whether there is enough memory in your chosen device for the longer-term; along with other considerations, such as if your device will need an external hard drive. Or do you plan to save everything to the cloud, and if so, what potential privacy implications should you first consider?

 

If you are already loyal to existing software providers, it could even be worthwhile to see if these companies can recommend one particular brand over another as being more compatible with their software.

 

2. Get smart with smartphones

If you’re buying a smartphone, make sure it supports 5G, as this will soon be the standard across Australia. Look for discounts on recent models, but also be open to trade-in models, as there are some great deals to be had at this time of year.

 

Reflect also on the mobile plan you are on – is there a deal to be done if you package the device’s purchase into your chosen plan rather than paying upfront? Are there added incentives to add your employees’ mobile phones to your business’ provider plan?

 

3. Don’t overlook wireless routers and wi-fi mesh systems

You know all too well how much a robust wi-fi setup helps to ensure smooth operations, whether for patient management software or telehealth consultations. Consider investing in a high-quality router or a mesh system to eliminate dead zones in your clinic. These can be bought from retail outlets, but it is worth first speaking to your service provider for recommendations on any compatible routers or modems. They are likely to have a list of preferred systems for their customers to use with their technology. These items often feature in EOFY sales, making it a great time to upgrade.

 

4. Ink efficient printers can last the distance

While less glamorous, a reliable printer is essential, but be cautious of the running costs, particularly ink prices. Sometimes a more expensive, ink-efficient printer is a better long-term investment than a cheaper model.

 

5. Keep records to save future headaches

EOFY sales present an excellent opportunity for podiatrists to upgrade their technology and maximise tax deductions. By strategically purchasing essential tech items and keeping meticulous records, you can reduce your taxable income and enhance your clinic’s efficiency.  Don’t forget to keep a record of everything! Consider exploring bookkeeping and finance apps that can help you to digitally store such records on your phone and/or the cloud.

 

What else can you claim?

According to the industry-specific guide for medical professionals, you can claim:

 

The work-related portion of other expenses that relate to your employment including:

• professional indemnity insurance
• journal subscriptions and publications
• professional association membership fees
• phone and internet costs, with records showing your work-related use
• medical equipment and insurance for that equipment
• personal protective equipment you buy, such as gloves, face masks, sanitiser or anti-bacterial spray.

 

More information

Head to the Australian Tax Office’s information guide for medical professionals to learn what you can claim across a range of items from clothing to utility bills.

 

The above information does not constitute legal, financial or other advice. Professional advice should be independently sought before making purchasing decisions.

 

….Psst. Live in Victoria and have questions about payroll tax? 

Don’t miss this webinar (or catch up on it afterwards if you are a member of the Australian Podiatry Association).