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  • Depreciation and capital allowances tool

    You can use the depreciation and capital allowance tool to help work out the deduction you can claim from a depreciating asset, for claims you are entitled to for capital allowance and capital works purposes.

    On this page

    Before you use this tool

    The tool has been updated to reflect tax depreciation incentives for eligible businesses, including:

    • temporary full expensing
    • instant asset write-off
    • backing business investment – accelerated depreciation.

    You may be eligible to Temporary full expensing for further information on eligibility if the following applies:

    • you are either a  
      • business with aggregated turnover of less than $5 billion
      • corporate tax entity and satisfy the alternative income test
       
    • the asset is first held, first used or installed ready for use for a taxable purpose between 7.30pm AEDT on 6 October 2020 and 30 June 2023 – Second-hand assets and improvements to assets may also be eligible.

    Temporary full expensing originally applied until 30 June 2022 and it has now been further extended until 30 June 2023.

    See, Interaction of tax depreciation incentives to work out how these incentives may apply to you.

    What this tool does

    You can use this tool to:

    • calculate the depreciation amounts for  
      • rental properties
      • your small business pool
      • your low-value pool
      • capital works
      • asset-based depreciation
       
    • calculate your share of deprecating assets in a partnership
    • calculate the decline in value on multiple assets
    • compare depreciation amounts between the prime cost and diminishing value methods
    • determine disposal amounts, including balancing adjustments
    • save your calculations so they automatically populate future year amounts for use in your tax return if you have a myGov account
    • save your calculations for your records or send them to your tax agent.

    You can't use this tool if you:

    • are claiming the asset as an immediate deduction (certain assets costing $300 or less for individuals)
    • are a small business claiming an immediate deduction for assets costing less than the instant asset write-off threshold
    • have complex depreciation claims, for example intangible depreciating assets including in-house software, an item of intellectual property (except a copyright in a film) or a telecommunications site access right.

    Access the tool

    There are 2 ways you can access the tool. Access the tool using your myGov account – you can save your records and calculations for use in your tax return.

    If you don't have a myGov account or your myGov account is not linked to the ATO, go to myGov and linking to the ATO.

    Access the tool without a myGov account – you can download your calculations for your records or to send to your tax professional.

    Watch: How to use the Depreciation and capital allowances tool

    This video shows you how to use the depreciation and capital allowances tool to help you complete your myTax return.

    Media: How to use the Depreciation and capital allowance tool
    http://tv.ato.gov.au/ato-tv/media?v=bd1bdiuboi7hkiExternal Link (Duration: 3:08)

    For more information, see Simpler depreciation for small business (instant asset write-off threshold).

    Last modified: 01 Jul 2022QC 17601