Can I Claim Smartwatches on Tax?

Key Takeaways

Smartwatches are deductible if used for work.
Apportionment for personal use is almost always mandatory.
Items over $300 must be depreciated over their useful life.
Use of the watch for fitness or tracking time is generally considered "too private."

The Short Answer

Yes, but you must be able to prove that you use it specifically for your role. The ATO generally considers a smartwatch to be a private expense (just like a standard watch) unless it's a "professional necessity" for things like messaging, navigation, or work-specific apps.

Who CAN Claim a Smartwatch?

A deduction is only available if there is a direct connection between your job and the watch's functions. This includes:

Emergency service personnel (e.g., paramedics or firefighters) who need immediate messaging/alerts
Delivery drivers and riders (who need navigation and messaging)
IT professionals (who need alerts for server monitoring)
Real estate agents (who need quick access to calendars and calls during showings)

Important: If you use the smartwatch primarily for tracking your fitness, checking the time, or as a fashion accessory, it is 100% private and cannot be claimed as a tax deduction.

Apportioning Work vs Private Use

Just like a mobile phone, you must apportion your claim. For instance, if you use your Apple Watch 60% for work messaging and 40% for personal health/notifications, you only claim 60% of the cost. The best way to justify this to the ATO is by keeping a 4-week usage diary.

The $300 Rule

If your smartwatch costs $300 or less, you can claim the business portion of the full cost as an immediate deduction. If it costs more than $300, you have to "depreciate" it over its useful life (typically 3 to 4 years). This means you claim a fraction of the cost each year for several years.

Keeping Records 2026

Keep your tax invoice for the watch. Also, keep any records (e.g., screenshots or a diary) that show you using the watch for specific work-related tasks like client messaging, calendar management, or professional alerts. This is essential for a successful claim if you are audited.

Need help with your 2026 Tax Return?

Our Registered Tax Agents ensure you claim every cent you're entitled to.

Get a Tax Quote