# Planning an IT purchase and checking tax treatment

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Plan an IT purchase around the business need, then check current ATO rules and tax treatment with your accountant before committing.

By Josh C, A Dark Cloud Creative

Published 2026-03-23

Buy IT equipment because it suits the work, then confirm its tax treatment against the current ATO rules. Eligibility, asset use and timing affect a deduction. This guide no longer relies on a June 2026 purchase deadline.

## Establish the operational need first

Write down the problem the purchase needs to solve. That might be an unsupported device, insufficient capacity or equipment needed by a new employee. Review whether configuration or repair would address the problem before replacing it.

The purchase cost is only part of the decision. Include setup, software, accessories, data transfer and the time needed for the person to use it.

## Check the current rule with your accountant

Instant asset write off rules and eligibility need to be checked for the relevant income year. The ATO guidance is the starting source, and your accountant can assess how it applies to your business and the proposed asset.

Do not treat an article published before a deadline as confirmation that the same threshold or conditions still apply. Keep the advice and supporting purchase records with the decision.

## A deduction is different from cash back

Tax treatment does not remove the need to pay for the equipment. The effect depends on the business circumstances and eligible use. Avoid comparing options using an assumed tax saving without checking those details.

If the purchase depends on a deduction, get that advice before committing. IT support can help specify and set up equipment, but it does not replace tax advice.

## Include installation and handover

Agree on the delivery, setup and data transfer required. Check account access and licences before the old device is retired. Keep the existing environment available until important work has been verified on the replacement.

If equipment needs to be installed or ready for use by a particular date for tax purposes, confirm that requirement with the accountant and include it in the plan.

## Retain records and dispose of old devices properly

Keep invoices, serial numbers, licence details and setup notes. Establish a recoverable copy of required data before erasing or disposing of an old device. Sensitive information needs deliberate handling.

The best purchase is one the business can afford, use and maintain. A tax incentive is one consideration, not the whole specification.

## What should go into the equipment brief?

Describe the applications the person uses, whether they work away from the office and the accessories they already own. A bookkeeper using browser apps and a second screen has a different requirement from someone reviewing large drawing files on site.

Include warranty, ports, battery needs and the cost of a replacement if the device is unavailable. Ask whether the existing software licence can be moved and whether older printers or specialist tools will still work. The brief should explain the job before it names a particular model.

## What should you check before retiring the old device?

Sign in on the replacement and complete a normal piece of work. Open required files, test the business inbox and confirm that essential apps are licensed. Check whether anything remains in local folders, browser profiles or a personal cloud account.

Retain the old device only for the agreed transition period and decide how its data will be erased. Keep the purchase and installation evidence for your accountant. The ATO distinguishes buying an asset from first using it or having it installed ready for use, so timing should be confirmed against the rule that applies.

## Further reading

- [ATO instant asset write off guidance](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/simpler-depreciation-for-small-business/instant-asset-write-off)
- [ATO small business eligibility questions](https://community.ato.gov.au/s/article/a07Mo00002BaUJ6IAN/can-my-small-business-claim-the-20000-instant-asset-writeoff)

## Useful next steps

- [Desktop support](https://www.adarkcloud.com.au/services/desktop-support)
- [New business setup](https://www.adarkcloud.com.au/services/new-business-setup)

Reviewed 2026-10-07

- [Ask for IT help](https://www.adarkcloud.com.au/contact)
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