Show download pdf controls
  • Uniform capital allowance system – Changing a depreciating asset's effective life

    From 1 July 2001, uniform capital allowance (UCA) rules will apply to most depreciating assets. Taxpayers generally calculate deductions for the decline in value of their depreciating assets using these rules.

    Under UCA rules, deductions for the decline in value of depreciating assets are generally calculated on the basis of effective life. You can choose to recalculate the effective life of an asset in certain circumstances where the effective life you have been using is no longer accurate. If you make an improvement to an asset, you may be obliged to recalculate its effective life.

    If you are using the simplified depreciation rules, you generally you won't use UCA rules. Under the simplified depreciation rules, you can claim an immediate deduction for most depreciating assets costing less than $1,000 (currently $20,000 until 30 June 2018 and pool most other depreciating assets.

    You can use the simplified depreciation rules if you are a small business entity (2007–08 and later years).

    You must use the simplified depreciation rules for income years where you were in the simplified tax system (2006–07 and earlier years).

    See also:

      Last modified: 04 Jul 2017QC 16295