Depreciation

Using simplified depreciation rules

If you choose to use the simplified depreciation rules, you must:

use them to work out deductions for all your depreciating assets except those specifically excluded
apply the entire set of rules, not just individual elements (such as the instant asset write-off)
only claim a deduction for the portion of the asset used for business or other taxable purposes and not for the portion for private use.

A small number of assets are excluded from the simplified depreciation rules, and a car limit applies to the cost of passenger vehicles. These are discussed in exclusions and other considerations.

Depreciation – the big picture

6 mins

About depreciation	0%
Depreciation rules	0%
Identifying which depreciation rules you can use	0%
Activity	0%

Do I use depreciating assets in my business?

3 mins

What is a depreciating asset?	0%
Assets that are not depreciating assets	0%
Activity	0%
Activity : Maya’s café	0%

Am I holding any depreciating assets?

4 mins

Who can claim deductions for the decline in value of a depreciating asset?	0%
Partnership assets	0%
Activity	0%

Can I use simplified depreciation for small business?

6 mins

Simplified depreciation rules overview	0%
Eligibility to use simplified depreciation rules	0%
Using simplified depreciation rules	0%
Apportioning for business and private use	0%
If you stop using simplified depreciation	0%
Activity	0%

Simplified depreciation: exclusions and other considerations

15 mins

Exclusions and other considerations	0%
Assets specifically excluded from simplified depreciation	0%
Cost of an asset	0%
GST	0%
Trade-ins	0%
Improvements to assets	0%
Assets used to earn non-business income	0%
Later sale or disposal of asset	0%
Claiming cars expenses	0%
Car cost limit for working out depreciation of passenger vehicles	0%
Activity	0%

Simplified depreciation: can I use the instant asset write-off?

5 mins

Using the instant asset write - off	0%
The instant asset write-off threshold amount	0%
Activity: Maya’s café	0%

Simplified depreciation: using a small business pool

15 mins

How a small business pool works	0%
Adding assets to a small business pool	0%
Managing your small business pool if you stop using simplified depreciation rules	0%
Using simplified depreciation rules again	0%
Activity: Maya’s café	0%
Small business pool calculations	0%
Calculating a small business pool with the ATO Depreciation and capital allowances tool	0%

Can I use general depreciation?

7 mins

General depreciation rules	0%
The cost of a depreciating asset	0%
Effective life of a depreciating asset	0%
Asset acquisition date and when it started to decline in value	0%
General depreciation: reduction for non-taxable use of a depreciating asset	0%
General depreciation calculation methods	0%
Which general depreciation calculation method to use	0%
Low-cost assets – threshold rule	0%
Activity	0%

Calculating depreciation using general depreciation rules

5 mins

Calculating a deduction for depreciating assets with the ATO Depreciation and capital allowances tool	0%

General depreciation: ceasing to hold or use a depreciating asset

5 mins

What happens if you no longer hold or use a depreciating asset?	0%
Calculating a balancing adjustment	0%
Activity	0%

General depreciation: low-value asset pool

9 mins

Starting a low-value pool	0%
Calculating a low-value pool	0%
Activity	0%

Can I use the capital works deduction or other special rules?

4 mins

Using the capital works deduction or other special rules	0%
Working out your capital works deduction	0%
Activity	0%
Other special rules	0%

Record-keeping

2 mins

Records of depreciating assets	0%

Related courses

1 mins

Related courses	0%

Course Feedback

Course Feedback	0%