What should a trade business tool and asset register include?

Why keep one

Business.gov.au says you must keep records of all business expenses and of expenses related to assets or stock. A register helps you find the right invoice for each tool when you need it for a warranty claim, an insurance claim or your accountant.

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Register fields

This field list is our recommendation, not an ATO form.

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Register header row to copy

Paste this into the first row of a spreadsheet and add one row per tool.

Asset ID | Description | Make and model | Serial number | Purchase date | Supplier | Invoice number | Invoice file location | Price paid | GST credit claimed | Business-use % | Location | Custodian | Warranty ends | Last service | Disposal date | Disposal method | Sale price incl GST | Notes

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Keep the original documents

Business.gov.au says most business records must be kept for 5 years, counted from when you got the record or completed the transaction, whichever is later, and that some records must be kept longer. It says the ATO accepts electronic images of paper records if they are a true and clear reproduction. Ask your accountant how long to keep asset records, as the register is not a substitute for the invoices.

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Tax treatment is a separate question

For an immediate deduction, the ATO says you can deduct only the business portion of the cost, while the entire cost of the asset must be under the relevant limit. If you are a small business using the simplified depreciation rules, that limit is $20,000 for eligible assets first used or installed ready for use on or after 1 July 2023. Check the current ATO page for your situation.

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Common questions

Are tools 100% tax deductible?

Not automatically. The ATO says you can deduct only the business portion of an eligible asset's cost, and the whole cost must be under the relevant instant asset write-off limit for the immediate deduction. A tool used partly for private purposes is apportioned, so confirm the current rules with the ATO or your accountant.[2]