Digital Product Expenses: What You Can Claim in Your Business
- anytimeassist
- Feb 23
- 2 min read
Most businesses rely heavily on digital tools — accounting software, cloud storage, websites, laptops, POS systems and more. The good news? Many of these costs are tax deductible. The key is understanding what type of expense you’re dealing with, when you can claim it, and how to record it correctly.
Digital product expenses generally fall into two categories: operating expenses and capital expenses.
Operating Expenses
Operating expenses are everyday costs of running your business.
These are usually claimed in full in the year you incur them.
Common examples include:
Internet service provider fees
Software subscriptions (accounting, cybersecurity, POS, CRM systems)
Website hosting and maintenance
File-sharing services
Cloud storage
Lease payments for equipment
If you pay monthly for software like accounting systems, booking platforms or cybersecurity programs, those fees are generally deductible in that same financial year.
If you lease equipment (for example a scanner or photocopier), the lease payments are treated as operating expenses because you don’t own the asset.
Capital Expenses
Capital expenses relate to assets you purchase or improve for your business.
These are generally claimed over time through depreciation (decline in value). If your business is a small business
Examples include:
Computers and accessories
Laptops, tablets and mobile phones
Connectivity boosters
Cameras
Point of Sale machines
Developing or acquiring a website
Custom or in-house software
Depending on your turnover and current tax rules, your business may qualify for simplified depreciation or an instant asset write-off. This can allow you to claim the full cost in the year the asset is first used or installed ready for use.
Records You Must Keep
To support your claim, keep:
Tax invoices
Loan or lease documents
Evidence of business use percentages
Calculations showing how you worked out your claim
Records must generally be kept for at least 5 years.
More Information
Digital product expenses are a normal part of running a modern business. When classified correctly and recorded properly, they can reduce your taxable income and keep your BAS accurate.
If you’d like help reviewing your digital expenses, setting up correct coding in your accounting software, or applying depreciation properly, Jess at Anytime Assist can help you keep it simple and compliant.
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