Disposal of capital assets may include the sale, scrapping, abandoning, distributing or other forms of disposal of the assets.

Business assets can include:

• tools, equipment and machinery
• property and premises, including land or buildings
• business vehicles
• furniture, fixtures and fittings
• domain names
• intellectual property such as patents or trademarks and
• licenses and permits.

If you sell a capital asset that your business has previously claimed a capital allowance or depreciation deduction, you may need to include a balancing adjustment amount when calculating your taxable income. This balancing adjustment amount may either increase or reduce your taxable income. 

If your business is registered for GST, you may need to include GST in the price of individual business assets that you sell. You may also need to make GST adjustments on your final activity statement, including for assets you hold after cancellation.