I'm not an accountant @raymon68, but this is my understanding.

1. For 2024–25:

You can claim up to $300 in work-related expenses without receipts, if you can reasonably justify the amount.

Keep a diary or log of small costs under $10.

2. For 2025–26:

Expect the $300 limit to remain unchanged unless new laws are passed.

3. From 2026–27 onwards:

If the policy goes ahead, you'll be able to claim up to $1,000 without receipts—but keep in mind this hasn't taken effect yet.

What's the question @raymon68 - It's true they haven't raised the $300 limit for immediate deductions for depreciating assets - i.e. you can fully depreciate the full cost of any depreciating assets in year 1 that cost $300 or less - doesn't seem to be a limit on the number of items, just the cost of the items has to be $300 or less, each. Any depreciating assets costing more than $300 have to be deducted the old way, as per an annual schedule.

Obviously the term depreciating assets refers to assets that are used in a business or are assets that are used by an individual when earning their taxable income, so for an individual a computer or printer that is solely used for investment management purposes would be a depreciating asset. If it is partly used for business or income generation and party for personal use, you need to apply the appropriate percentages so that you are only claiming for the percentage that is used for income generation purposes. Tax agents and accountants know all this stuff and will do it automatically once you tell them what the personal use percentage is, if any.

There is also a rule that the ATO does NOT require individuals to keep receipts for tax deductions up to a maximum of $300 per year as long as they can show if asked how they reasonably arrived at (calculated) the amounts that they are claiming - and what those amounts are for, and that they are only claiming for stuff that is tax deductible. This particular rule applies only to expenses incurred during earning of income, so not donations or other deductions. So laundering (washing, drying, ironing) of compulsory work uniforms or protective clothing could be one thing that could be claimed. Protective gear such as steel capped work boots or safety glasses (or monogoggles) not supplied by your employer is another.

My understanding is that you can also claim $10 per year in bucket donations (coins in a bucket at Bunnings or a shopping centre type donations) without receipts, but all deductible donations beyond $10 have to have receipts and all amounts beyond $10 have to be $2 or more each.

In terms of expenses relation to investing, most stock picking and listed company information annual subscriptions would normally be tax deductible if that information is used to help you earn your investment income, which can be from capital gains or losses, and/or from dividends and distributions, so I claim subs to FNArena, Intelligent Investor (when I subscribe to them), Strawman.com (when I have to pay; I haven't had to pay for a couple of years because of the monthly rewards), MarcusToday, and so on. You don't even have to prove that you've got even just one investment idea from each service and made money on it. Information can be used to keep you from losing money in bad companies as well as making money in good ones, so as long as you used the information these services supply to you in any way at all related to your investments, that makes them a tax deductible expense in my view, happy to be corrected if anybody has an alternative view on that.

But getting back to the $300 limit. What was the question exactly?

Hey @Bear77 specifically the an immediate deduction for the cost of depreciating assets costing <$300 or less.

I am saying the $300 is not indexed and has not moved up since I have been a tax payer .. which seems incredible to me as a tax payer!

Example the leather RM williams were ~$300 now they retail for $699 .. now they are on my spread spread sheet as a depreciatable asset..

Thanks

Hey @lowway - That's what I was thinking the limit should go up in proportion to a least inflation. Or go up in proportion to the politicians salary ...mmmm whaaat!

I appreciate the reply.

You're right @raymon68 - it's been set at $300 for 24 years now - which is indeed a long time because - as you say - inflation has certainly impacted the price of everything during that time so it is less and less useful as time goes by - The immediate deduction for depreciating assets costing $300 or less in Australia was introduced as part of the Uniform Capital Allowance (UCA) regime under the Income Tax Assessment Act 1997 (Division 40, subsection 40‑80(2)), which came into effect on 1st July 2001, smack-bang in the middle of the 12 year period (11th March 1996 to 3rd December 2007) that Howard was PM and Costello was Treasurer. The Australian Federal tax system as we know it hasn't really had any reform or major enhancements since the Howard/Costello years. There was some minor short term changes (to do with depreciation and other deductions) implemented during the worst of covid, but nothing permanent.

You can't buy much with $300 these days compared to what you could buy in 2001.

ChatGPT tells me:

 What changed from 1 July 2001?

• Division 40 established the general depreciation rules for "plant and equipment" assets.
• A specific provision—Subdivision 40‑H—provided an immediate deduction for assets costing $300 or less, provided they met certain conditions.
• These four eligibility tests included:

1. Asset cost must be ≤ $300.
2. Must be used mainly to produce assessable income, but not necessarily in a business.
3. Must not be part of a set of assets that together cost more than $300.
4. Must not be one of a number of identical assets acquired within the same year costing more than $300 in total 

Why was this rule introduced?

The key purposes behind this measure were:

• Simplification: To streamline tax compliance by allowing small, low‑value assets to be expensed immediately, avoiding the need for depreciation calculations.
• Administrative efficiency: It avoids minor assets entering depreciation schedules or low‑value pools, reducing bookkeeping burdens.
• Cash flow benefit: Taxpayers—especially individuals and small-scale investors—could claim the full cost upfront, easing modest financial outlays.

--- end of ChatGPT explanation ---

So the reason for the introduction was sound, but agreed, it should have been indexed to inflation.

Hola @Bear77 Yes that's the topic: The immediate deduction for depreciating assets costing $300 or less in Australia.

Wow 24 years at $300 setting. Uniform Capital Allowance . Nice research @Bear77

Is this $300 UCA worth reviewing? I should email the ATO and see what the Commissioner says.

Good luck with that @raymon68 - I reckon the Commissioner's responsibilties are limited to enforcing the tax law and making judgement calls and rulings within the framework of existing laws. I reckon any changes to tax law has to come from Government, and we're likely to have a very comfortable Labor Federal government now that may not see the benefits in that sort of reform - i.e. benefits to them. The irony is that if there was ever a time to get some sensible stuff done such as this, it is now, after such a landslide win federally. They can withstand some backlash and I really can't see them getting much if any backlash over sensible changes such as indexing caps such as that one. I just don't reckon they will see it as a major issue that needs to be addressed. Worth raising for sure, but it's probably going to rate a fair way down their list if it gets on it. Perhaps the treasurer Jim Chalmers or your local MP would be the best person to email, rather than the commissioner. Or all 3.

Don't forget, if you are running a business there is the Instant Asset Write Off:

On 14 May 2024, as part of the 2024–25 Budget, the government announced it will continue to provide support for small businesses by extending the $20,000 instant asset write-off limit for a further 12 months until 30 June 2025.

This measure is now law.

Under the measure small businesses with an aggregated turnover of less than $10 million, can deduct:

• the full cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use between 1 July 2024 and 30 June 2025
• an amount included in the second element (cost addition) of eligible depreciating asset's cost that they have incurred between 1 July 2024 and 30 June 2025, if they claimed an immediate deduction for the asset under the simplified depreciation rules in a prior income year where the amount is:
• the first amount of second element cost incurred after the end of the income year in which the asset was written off; and
• less than $20,000.

The $20,000 limit under the measures applies on a per asset basis, so small businesses can instantly write off multiple assets.

Assets valued at $20,000 or more can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year after that. In addition, pool balances under $20,000 at the end of 2024-25 income year can be written off.

@raymon68 , pretty sure my accountant isn't going to let me depreciate my RM's but I'm gonna ask him this year just to see the look on his face, haha.

Depends on the job you're claiming them for @tomsmithidg - if they're RM Williams steel-capped workboots and you do some work in an industry like construction or warehousing or anywhere that requires steel caps, they're claimable. If you're working out in the sun and you wear an RM Williams Akubra hat to protect your face and neck from the sun, that's also deductable. As long as you're earning some income while wearing them, and they're protecting you, they would come under the heading of personal protective equipment or PPE.

Sadly I discovered that wearing RM’s (not steel toes) while walking down George st to a construction site does not qualify.

However If your accountant agrees to it, there is a decent part of my industry that would seek them out.