About this guide

As a general rule, you can claim deductions for expenses you incurred in gaining or producing your income - for example, in carrying on a business - but some expenditure, such as the cost of acquiring capital assets, is generally not deductible. However, you may be able to claim a deduction for the decline in value of the cost of capital assets used in gaining assessable income.

The Guide to depreciating assets 2007 explains:

  • how to work out the decline in value of your depreciating assets
  • what happens when you dispose of or stop using a depreciating asset, and
  • the deductions you may be able to claim under the uniform capital allowance system (UCA ) for capital expenditure other than on depreciating assets.

Who should use this guide?



This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

End of attention

Use this guide if you bought capital assets to use in gaining or producing your assessable income and you would like to claim a deduction for the assets' decline in value or if you incurred other capital expenditure and want to know whether you can claim a deduction for the expenditure.

Publications and services

To find out how to get a publication referred to in this guide and for information about our other services, see the inside back cover.

Unfamiliar terms

For an explanation of any unfamiliar terms used throughout this guide, see Definitions.

Last modified: 27 Aug 2007QC 27892