Every Australian business owner faces the same question when it’s time to equip their team with computers: should I lease, buy new, or buy refurbished? Each option has different upfront costs, different tax treatment, different cash flow implications, and different long-term economics. Choosing the wrong one can cost your business thousands — either in unnecessary spending or in missed tax benefits.
This guide compares all three options honestly, covering the real costs, the tax implications, the practical pros and cons, and which approach makes the most financial sense for different business situations.
Disclaimer: This article provides general information. Tax treatment of leases and asset purchases varies by structure and circumstances. Always consult your tax professional before making decisions.
Leasing means paying a monthly fee to use equipment owned by a leasing company. At the end of the lease term, you typically return the equipment, buy it for a residual value, or upgrade to newer gear.
How it works financially: You pay a fixed monthly amount — typically $30–$80 per month per laptop depending on the equipment and lease term. Over a three-year lease, a laptop that retails for $1,500 might cost you $40–$50 per month, totalling $1,440–$1,800 across the full term. You often end up paying more than the retail price of the equipment by the time the lease concludes.
Tax treatment: Lease payments are generally deductible as an operating expense in the period they’re incurred. Each monthly payment reduces your taxable income in the month you pay it. This spreads the deduction evenly across the lease term rather than concentrating it in one year.
The advantages: No large upfront cost — preserves cash flow in the short term. Predictable monthly expense for budgeting. Potential to upgrade to newer equipment at the end of each lease cycle. Can include maintenance and support packages.
The disadvantages: You don’t own the equipment — at the end of the lease, you either return it or pay a residual to keep it. Total cost over the lease term often exceeds the purchase price of the equipment. You’re locked into a contract with early termination fees. Interest and finance charges are embedded in the monthly payment. And you’re typically leasing new equipment at retail prices — the most expensive option per unit.
Best for: Businesses that need to preserve cash flow absolutely, large enterprises with dedicated IT procurement teams who value refresh cycles, and situations where the equipment needs to be the very latest model at all times.
Buying new means purchasing equipment outright at full retail price. You own it immediately, use it for as long as it’s productive, and dispose of it when you’re ready.
How it works financially: A new business-class laptop typically costs $1,200–$2,000. A new business desktop costs $1,000–$1,800. You pay the full amount upfront.
Tax treatment: Under the instant asset write-off, eligible small businesses can deduct the full cost of the asset immediately in the year of purchase — provided it’s below the applicable threshold and is used or installed ready for use before the end of the financial year. This concentrates the entire deduction into one year, providing a larger immediate tax benefit than leasing’s spread-out deductions.
The advantages: You own the equipment outright — no ongoing payments, no contracts, no residual fees. The instant asset write-off provides a significant immediate tax deduction. No interest or finance charges. Freedom to use, modify, or dispose of the equipment whenever you choose.
The disadvantages: Large upfront cash outlay — $1,500 per laptop or $15,000 for a 10-desk office. Rapid depreciation in value — a $1,500 laptop is worth $400–$600 within two years. You’re paying retail prices that include manufacturer margins, distributor margins, and retailer margins. Technology ages whether you paid full price or not.
Best for: Businesses with strong cash reserves that can absorb the upfront cost without impacting operations, and situations where owning the asset outright is important for accounting or compliance reasons.
Buying refurbished means purchasing professionally tested and restored business-class equipment at a significant discount to the new retail price. You own it outright, just like buying new — but at 40–60% less.
How it works financially: A refurbished business-class laptop with equivalent specifications to a $1,500 new machine typically costs $320–$880. A refurbished business desktop costs $250–$750. You pay the full amount upfront, but the “full amount” is dramatically lower than buying new.
Tax treatment: Identical to buying new. Under the instant asset write-off, eligible small businesses can deduct the full cost immediately. The ATO does not distinguish between new and refurbished equipment — you claim the amount you actually paid. A $360 refurbished desktop generates a $360 instant deduction, just as a $1,500 new desktop generates a $1,500 deduction. The deduction-to-spend ratio is the same, but the absolute cash outlay is far lower.
The advantages: Lowest upfront cost of all three options. Same instant asset write-off tax treatment as buying new. You own the equipment outright — no leases, no contracts, no residual payments. Enterprise-grade build quality — these are Dell Latitude, Lenovo ThinkPad, HP EliteBook, and HP ProDesk machines originally built for corporate deployment. Business-class security features including TPM 2.0, Windows 11 Pro, and BitLocker support. Environmentally sustainable — extending the life of existing hardware reduces e-waste. And backed by warranty from a reputable Australian seller.
The disadvantages: The equipment is not brand new — though professionally refurbished machines are tested, restored, and delivered in excellent condition. The processor generation is typically one to three generations behind current new models — though for standard office workloads, the real-world performance difference is negligible. Cosmetic condition varies by grade — Premium and Excellent grades are near-new in appearance, while lower grades may show minor wear.
Best for: Businesses that want the best value per dollar spent, SMBs that need to equip teams without large capital outlays, cost-conscious business owners who understand that daily performance matters more than processor generation, and any business that values smart financial management over paying for a “new” label.
The differences become stark when you scale to a realistic business scenario.
For leasing 10 new laptops at $45 per month per device on a three-year term, the monthly cost is $450 and the total three-year cost is $16,200. The tax deduction is spread at $5,400 per year. You don’t own the equipment at the end, and the total spend exceeds the retail purchase price.
For buying 10 new business laptops at $1,500 each, the upfront cost is $15,000. The instant asset write-off deduction is $15,000 in year one. At a 25% company tax rate, the tax saving is $3,750, making the net after-tax cost $11,250. You own the equipment.
For buying 10 refurbished business laptops at $560 each (Lenovo ThinkPad T14 Gen 2i with Core i5, 16GB RAM, 512GB SSD), the upfront cost is $5,600. The instant asset write-off deduction is $5,600 in year one. At 25% tax, the saving is $1,400, making the net after-tax cost $4,200. You own the equipment.
The refurbished option costs $7,050 less after tax than buying new and $12,000 less than leasing over three years — while delivering the same daily computing capability for standard office workloads. That’s capital that stays in your business, working for you instead of sitting on a desk.
Leasing makes sense when cash preservation is the absolute top priority and you cannot afford any upfront expenditure, when your industry requires the latest hardware at all times for compliance or capability reasons, or when you want bundled maintenance and support included in a single monthly payment.
Buying new makes sense when you need specific current-generation features that refurbished models don’t offer, when your organisation has procurement policies that require new equipment, or when you have strong cash reserves and the upfront cost doesn’t impact operations.
Buying refurbished makes sense in almost every other scenario — which, for the majority of Australian small businesses, is most of the time. It delivers the lowest total cost, the same tax treatment as buying new, enterprise-grade hardware quality, and the financial flexibility that comes from not overcommitting capital to equipment that depreciates the moment you unbox it.
The smartest equipment decision isn’t about finding the newest hardware or the most complex financing arrangement. It’s about getting capable, reliable machines into your team’s hands at the lowest total cost — while taking full advantage of the tax benefits available to your business.
For most Australian small businesses, refurbished wins on every financial metric: lowest upfront cost, same instant write-off benefit as new, lowest net after-tax cost, and full ownership with no ongoing obligations.
The equipment works the same. The tax deduction works the same. The only difference is how much cash stays in your business afterwards.
Browse refurbished business laptops and desktops at Computer and Laptop Sales →
General information only. Not personal tax advice. Consult your tax professional for advice specific to your business situation.
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