Handbags, briefcases and satchels purchased to carry items for work purposes (such as laptops, tablets, work papers or diaries) may be deductible.

The deductibility of the bag will depend on:

  • Cost - It's easier to justify to the ATO that a $300 bag is for work purposes than a $10,000 Prada bag.
  • Type - Large bags that can carry work items will more likely be deductible (than small handbags that only fit keys and lipstick).
  • Use - Having a bag exclusively for work purposes will maximise deductions.