Coffee machines & tax deductions*

A question we often get asked:

Can I claim my recently purchased business office coffee machine as a deduction against my business income?

office coffee machines sydneyFunnily enough, you can, but there are certain questions you need to consider before doing so.

  • Ask yourself these four questions:
  • Are you a business owner, or just an employee?
  • What was the price of the newly purchased machine?
  • Is your business registered for GST?
  • Is the machine solely used for business purposes?

In reality, you will not be able to claim 100% of the expense of your corporate office coffee machine, unless the machine is not based in a home-based business site.

The steps in order to claim the machine are quite simple.

If you are registered for GST, you should deducted the machine as follows:
(Cost of the machine — The GST on the machine) x business consumption of the machine x The suitable depreciation rate.

This process is different if you are not registered for GST.

If you are not registered for GST, the cost of reduction is calculated as follows:
Cost of the machine x Business consumption of the machine x The suitable depreciation rate

* Please seek independent financial advice about the tax deductability of your new office coffee machine. This article is meant as guide and does not replace professional independent financial advice.