A capital expense is either:

• the expense of a depreciating asset – this includes both the amount you paid for the asset and the expenses from transporting and installing it
• an expense associated with establishing, replacing, enlarging or improving your business.

Examples include machinery and equipment, motor vehicles and mobile phones. Capital expenses may also include construction expenses, software expenses and website expenses.

You may already personally own these assets and bring them into your business or you may purchase them for use in your business to produce assessable income.