Is a computer classed as a capital expense?

Question

RichATO · Accepted Answer

A computer is a depreciating capital asset with an effective life of 2 years (laptop, iPad, tablet) or 4 years (desktop PCs, monitors, servers). You can claim the GST paid on the computer in your BAS return. The depreciation of the asset is only included in your business income tax return. It's included under your depreciation schedule. Right now you have the choice of two depreciation amounts: 1. Calculating the decline in value each year over the effective life of the asset; OR 2. Utilising temporary full expensing to immediately deduct the business portion of the cost of the computer You can read more details about Temporary full expensing (https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/temporary-full-expensing) and using our effective life determinations (https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/general-depreciation-rules-capital-allowances/effective-life-of-an-asset/determining-the-effective-life-of-an-asset/using-our-determinations) on our web site.

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