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  • Replacements

    Attention

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

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    It has been the longstanding practice to treat the initial purchase of certain assets as not depreciable but to allow claims for an immediate deduction for the cost of their replacement. The practice principally related to low cost items that had very long or indeterminate lives, were difficult to keep track of, and were subject to frequent replacement through loss or breakage-for example, crockery, bedding, linen.

    With the introduction, as from 1 July 2000, of low-value pooling and the Government's intention to reinstate the $300 write-off for depreciating assets used by taxpayers predominantly in deriving non-business income (that is, includes rental income) , the replacement basis for deductions is no longer available for assets you first use (or have installed ready for use) for the purpose of producing assessable income after 30 June 2000.

    Last modified: 28 Jul 2003QC 16187