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  • Removal of accelerated depreciation



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

    End of attention

    Accelerated depreciation allowed the full cost of an item of plant to be claimed well before the end of its effective life. Until 11.45am (by legal time in the ACT) on 21 September 1999, actual rates for depreciation were set. These rates were based on effective life with a 20 per cent loading which were then broadbanded into one of 6 common rates. The loading together with the broadbanding produced accelerated rates of deductions for depreciation.

    Apart from certain small business taxpayers accelerated depreciation is no longer available for plant if:

    • you acquired it under a contract entered into after 11.45am (by legal time in the ACT) on 21 September 1999
    • you constructed it and the construction started after that time or
    • you acquired it in some other way after that time.

    Depreciation, including the use of the diminishing value method, is still able to be claimed. However, the amount is calculated differently depending on whether you are a small business taxpayer and when you acquired the plant.

    Last modified: 13 Feb 2020QC 27380