Inland Revenue will permit a maximum one off claim of $400 for all purchases of office equipment and a further maximum of $400 for all telecommunications equipment.
Alternatively, there are reimbursement options:
- If the equipment is used exclusively for business, the reimbursement to the employee can be 100% of the annual depreciation.
- If the principal purpose of the piece of equipment is for business use, then no more than 75% of the annual depreciation can be reimbursed exclusive of tax.
- If the principal use is for private purposes, then no more than 25% of the annual depreciation can be reimbursement exclusive of tax.
If an asset costs $1000 or less, the reimbursement can be paid in full, just as the asset can be treated as a 100 percent deduction in the year of purchase by the employer.