This information will provide you with an overview of the calculations and considerations when claiming depreciation deductions.

Capital works used to produce income, including buildings and structural improvements, are written off over a longer period than other depreciating assets.

Work out the deduction you can claim from a depreciating asset for capital allowances and capital works purposes.

To calculate your depreciation deduction for most assets you apply the general depreciation rules (unless you're eligible to use simplified depreciation for small business). These rules set out the amounts (capital allowances) that can be claimed based on the asset's effective life.

You may be able to use the simplified depreciation rules for small business.

Work out if your business can use the instant asset write-off to claim a deduction for the cost of an asset.

The instant asset write-off threshold amounts have changed over recent years. Make sure to check the threshold amount when calculating your deduction.