If you claim a deduction for depreciation in your tax return, you must keep the following information:
- the undeducted cost and written down value of each item of plant at the start of the income year
- the cost and the date you first used or installed ready to use each additional item you acquired during the income year
- where you dispose of an item during the year, the cost and sale price, dates of acquisition and disposal and the undeducted cost and written down value of the item
- the adjustments made to cost, undeducted cost and written down value
- details of balancing charge relief including the alternative treatment of assessable adjustments
- the rate and amount of depreciation claimed for each item of plant
- the undeducted cost and written down value of each item at the end of the income year.
To help you keep this information, we have provided depreciation worksheets. You may make photocopies. Do not attach any worksheets to your tax return but keep them with your other tax records.
To download copies of these worksheets, see Worksheet 1 – Depreciation (PDF, 49KB)This link will download a file.
You must also keep:
- details of the basis of your estimates of effective life where you have not adopted the life periods determined by the ATO
- original documents such as suppliers' invoices and receipts for expenditure on plant.
You must keep the information and records for the entire period over which you depreciate an item and for a further 5 years from the date of your last claim. The 5 years starts on either 31 October or the date you lodge your tax return, whichever is the later. This period is extended if, at the end of the 5 years, you are in a dispute with the ATO that relates to the depreciation claim.