Can I Claim a Watch on Tax in Australia?

Watches can be stylish, practical, and even essential — but can you claim them as a tax deduction in Australia? The short answer is: in most cases, no. However, there are specific exceptions where a watch may be considered a legitimate business expense.

Let’s unpack when a watch is tax-deductible, when it’s not, and how the Australian Taxation Office (ATO) views personal vs work-related use.

Are Watches Generally Tax-Deductible?

In general, no — watches are considered a private expense, even if you wear them to work. According to the ATO, personal items like clothing, jewellery, and accessories are not deductible unless they are directly related to earning your income and have a specific occupational function.

When Can a Watch Be Claimed?

There are very limited circumstances where a watch may be claimed on tax:

1. Specialised or Functional Watches

If the watch serves a specific occupational purpose beyond telling time, the ATO may allow a deduction. Examples include:

• Nurses or paramedics using a fob or medical-grade watch to measure pulse rates.

• Construction workers using shockproof or weather-resistant watches with job-specific features.

• Pilots or divers using aviation or diving watches with altimeters or depth gauges.

Q: Can a tradie claim a G-Shock or tough watch?
A: Possibly — if the watch includes features directly relevant to the job (e.g. timers, alarms, durability), and private use is incidental. Keep records and a clear business case.

2. Claiming as a Business Asset (with Justification)

For sole traders or business owners, a high-end watch might be considered a business asset, but only in exceptional cases where:

• It’s used exclusively in a business capacity (e.g. part of a uniform or presentation standard),

• It forms part of the branding or appearance strategy (e.g. fashion influencers or models),

• The ATO would consider the expense as having a clear, income-generating purpose.

Q: Can a fashion influencer claim a luxury watch?
A: Possibly — but they’ll need to prove it’s used solely for content creation, branding, or sponsorship purposes. Evidence such as social media posts, campaign briefs, or brand partnerships would be required.

What About Smartwatches?

Smartwatches like the Apple Watch or Samsung Galaxy Watch are still considered personal items — but if they’re used for work-related tasks, you may be able to claim a portion of the cost, such as:

• Accessing work emails and messages

• Business app usage

• Tracking job-specific tasks (e.g. health professionals monitoring client metrics)

You’ll need to apportion the expense between personal and business use, just like you would for a phone or computer.

What Evidence Do I Need?

To make any claim involving a watch, you’ll need:

• A tax invoice showing the cost and date of purchase

• A logbook or usage diary outlining how and when it’s used for business

• A clear explanation of how it relates directly to earning income

• Photos or proof of it being used as part of a work uniform or marketing campaign (if applicable)

What You Can’t Claim

• Watches worn for convenience or personal timekeeping
  

• Fashion or luxury watches with no clear link to income production

• Gifts, even if business-related (unless under the minor benefit rule for staff)

Final Verdict

Unless your watch is integral to your profession, it’s unlikely the ATO will accept it as a deduction. Even when it’s partially work-related, such as a smartwatch or tough trade watch, you’ll need to justify the business use and maintain solid records.

If you’re not sure, don’t guess — an incorrect claim could raise red flags or lead to penalties.

Speak to Latitude Accountants

Thinking about claiming a watch, tech item, or uniform piece? Let’s get it right. At Latitude Accountants, we help individuals and businesses make smart, ATO-compliant claims without leaving money on the table.

Contact us today for professional advice tailored to your industry. We’ll help you understand what you can legally claim — and what to avoid.

📞 Contact Latitude Accountants
📧 info@latitudeaccountants.com.au
🌐 www.latitudeaccountants.com.au

Disclaimer

This article is general information only and does not constitute tax or financial advice. Always consult a registered tax professional for personalised guidance.