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Are Standing Desks Tax Deductible?

June 17, 2021

Are Standing Desks Tax Deductible?

Whether you work from home permanently or temporarily, you most probably have a lot of office equipment at your home. You might even be thinking of purchasing a  standing desk for your home office setup.

Check out some of UpDown Desk's Standing Desks!

You might want to ensure that your valuables, such as your standing desk. are covered when tax time approaches.

Read below to find out whether your standing desk is tax-deductible.

Claiming Office Furniture on Your Taxes

The answer is yes.

Business owners can claim a tax deduction on a majority of expenses that are required when carrying out their business. These expenses need to be directly related to the reception of the assessable earnings.

It’s difficult to carry out the necessary work without relying on a functional workplace setup. For this reason, you can claim a tax deduction for office furniture, such as standing desks, chairs, shelves, and storage.

Office equipment qualifies as a capital expense. Capital expenses refer to the costs that you incur when purchasing assets that have a serviceable life over 1 year.

The criteria for what office furniture can be claimed for tax deduction are as follow:

  • The expenses are for running a business, and not for private use
  • If the expenses are a mixture of business and private use, then you can only claim the part that is being used for business
  • A record is kept to show expenses

As an employee, you are allowed to claim a tax deduction on office furniture. Make sure that you have not already claimed these amounts with your employer.

For these reasons, it doesn’t matter whether you’re running a small business, working from home, or you are an employee of a large corporation. If you are an Australian citizen, you are eligible to receive money back from the Australian Taxation Office (ATO) after submitting your yearly tax return.

How Do Home Office Equipment Tax Deductions Work?

Let’s say you’ve already set up your home office with furniture, such as a new standing desk. If that’s the case, you can claim a deduction for the decline in value of that standing desk to the degree that it relates to your work operations.

The standing desk’s “effective life” will permit you to claim a deduction. 

A standing desk that costs less than $300 can be written off and does not need to be depreciated.

If, for example, your company has a tax rate of 30%, you can claim back 30% of your spend on office equipment. If you spend $2,000 on a new standing desk, your income tax deduction would amount to $600. 

In essence, submitting tax deduction office furniture claims will ensure a deduction for:

  • The full price of the item, if it is less than $300, or
  • The decline in value for items over $300

To figure out the exact drop in the value of your furniture year after year, you need to know  how long standing desks last.

Instant Asset Write-Off Scheme

This scheme lets you write off the entire cost of an asset that was bought during the financial year.

By subtracting the full expense, you can decrease your total taxable income.

This scheme takes into consideration the imminent easing of COVID-19 restrictions since many organisations need to fund equipment to improve productivity levels to meet the increasing demand of the economy.

With the instant asset write-off, you can claim a deduction on your tax return for the full price of office furniture, including your new standing desk.

It’s recommended to take advantage of the instant write-off plan, so you don't have to wait and claim the costs back in the future.

This initiative has been extended until June 2022.

This makes buying any desks and accessories surprisingly cost effective. You and your staff will all enjoy what a sit-stand electric desk has to offer for both increased productivity and reduced pain from bad posture.

Why Should I Buy A Standing Desk?

Standing desks are a useful investment for anyone’s workspace. There are many reasons  why standing desks are popular. It improves your overall well being which, in turn, has a positive impact on your productivity.

Consequently, businesses will benefit from tax deductions and the instant write-off.

This might be the best time to start investing in standing desks to boost your productivity.  

If you are going to invest in upgrading your home or office furniture, taking full advantage of this scheme is going to be a big help.  Standing desks are known for being expensive, so you’ll want to get as much back as you can.

How To Cover Your Standing Desk For Tax Deductions

Assemble An Inventory List

If you want to make a claim, then it’s important to keep track of all of your office equipment. The first important step is to make an inventory list. 

Hold On To Your Receipts

It’s common for employees and employers to have inadequate documents to support tax deduction claims.

If you bought a new standing desk or any new office furniture, make sure to hang onto those receipts so you can claim for them later.

Make a note of the standing desk’s model. This will help you track the item over time, as well as provide useful information. 

Keeping accurate records of your office expenses allows you to submit a concise and clear claim on your office tax deduction.

If you don’t want to invest in a fully built standing desk, you can look into investing in  a standing desk converter for your office. These are significantly cheaper than standing desks, but you can still claim for them provided you follow the same steps. 

You can also employ other  standing desk hacks to get the same result for less money.

Archive Your Records Through Digitalisation

Store your digital records. You can do this by taking photos of the standing desk and storing them on an off-site external hard drive or cloud-based storage.

To Conclude

The COVID-19 pandemic changed the way many organisations do business. 

Companies need to prioritise the safety of their employees and as such, many employees have been given the option to work from home.

However, there are still costs involved since work operations, such as furnishings and equipment.

Thankfully, business owners are permitted to claim a tax deduction on home office furniture, and this includes standing desks.

If you are not sure whether you want to purchase a standing desk, read  kneeling chair vs standing desk.

You can also read about this on the ATO website.

Check out our PRO Series Electric Sit-Stand Desk Collection and Accessoriespage.

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