Show download pdf controls
  • 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 for the instant asset write-off changes and new backing business investment – accelerated depreciation from 1 July 2020.

    The tool has also been updated to reflect the eligibility for recent changes for temporary full expensing (JobMaker Plan) announced in the budget on 6 October 2020, including information on how to claim.

    You should refer to temporary full expensing for further information on eligibility if the following applies:

    • the asset is first held from 7.30pm (AEDT) on 6 October 2020 and 30 June 2022
    • you are either a
      • business with aggregated turnover of less than $5 billion, or
      • corporate tax entity and satisfy the alternative income test.

    Temporary full expensing will be further extended until 30 June 2023, as announced in Budget 2021. This tool will be updated once this extension becomes law.

    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

    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 Link (Duration: 3:08)

    See also:

    Last modified: 01 Jul 2021QC 17601