The truth about claiming your handbag as a tax deduction
You can only claim a handbag in limited circumstances.
If you purchase a handbag (or briefcase, suitcase, satchel) and use it for work-purposes (that is, to carry work items such as a laptop) you may be able to claim a deduction. Remember though, the bag must be suitable for carrying the work items you need to transport for work.
If the bag is not suitable for carrying work items (for example, a clutch bag) or you’re carrying only personal items in the bag (such as your lunch box, personal phone, or tablet) – you will not be able to claim it.
To claim as a deduction
You must incur the cost and use the bag or case to carry items for work.
You must need to carry the items for work and the bag or case must be suitable for that purpose.
You must work out if you can claim the cost of the item in the income year you buy it or the decline in value over its effective life.
You must have a record of your expenses and use of the bag or case.
Items you carry and use for work may include laptops, tablets, work papers, protective equipment or diaries.
Items such as gym gear, food, or a personal phone, tablet or laptop are not items you need to carry and use for work. These are private or domestic items.
When you use the bag or case for both private and work purposes, we need to apportion your deduction. You can only claim the work-related use of the bag or case as a deduction.
What you can't claim
You can't claim a deduction for bags or cases:
If you mainly use the bag or case for private purposes, such as carrying your lunch or beauty and hygiene products to work
You use the bag or case for private purposes, such as weekend travel
That someone else supplies for your use.
Types of bags and cases you can claim
Bags and cases that you use for work may include:
A briefcase
A laptop bag
A satchel
Luggage – for example, suitcases and carry-on bags
A handbag (in limited circumstances).
Remember, to claim any work-related item as a tax deduction, you’ll need a receipt.