Uniform capital allowance system: $300 immediate deduction

Background - the uniform capital allowance system

The uniform capital allowance (UCA) rules apply to most depreciating assets. Taxpayers calculate deductions for the decline in value of their depreciating assets using these rules.

The rules provide an immediate deduction for certain depreciating assets costing $300 or less.

If you are using the simplified depreciation rules, generally you will not use the UCA rules. Under the simplified depreciation rules, you can claim an immediate deduction for most depreciating assets costing less than $1,000 and pool most other depreciating assets. You can use the simplified depreciation rules if you are a small business entity (2007-08 and later income years). You must use the simplified depreciation rules for income years where you were in the simplified tax system (2006-07 and earlier years). For more information see www.ato.gov.au/sbconcessions