fbpx

Can you claim your handbag as a tax deduction?

If you live in Australia you would know tax time is around the corner, and if you’re like me you would have purchased many handbags used for work.

But did you know that you could claim your work bag as a tax deduction?

According to this article we found here, ‘The bag must be used only for carrying items you need for work such as a laptop, work papers or diaries.

If you put your lunch, wallet, keys or phone in there too – you can’t claim anything.  According to Australian Tax Office rules, your personal items need to go in a second bag, which you cannot claim.’

“You can’t claim a deduction, if you use the bag predominantly for personal purposes, such as carrying your lunch and beauty and hygiene products,” the ATO said.

“This is private use.”

So can I really claim that Dior Book Tote or that gorgeous Saint Laurent tote I have been wanting to buy for work?

My excitement when I found out that I could claim my handbag!?

 

Well, it looks like it’s possible to make a partial claim for the bag so long as when it is used for work you keep your personal items separate.

If the bag cost was over $300 then the bag can be depreciated using the ATO’s depreciation calculator or if you’re a business you can claim the entire cost up to a certain amount … but a word of caution, the bag must be essential for your work e.g. you are a consultant or a lawyer and require a briefcase for work.

Obviously now with COVID and ISO that may mean that there are some months that you were not carrying that bag to work so make sure you consult with your accountant first before making any claims / deductions.

Read our article here for the best work bags or click the images below to take you straight to the product page.

Leave a Comment