Immediate deduction for depreciating assets costing $300 or less

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You can claim an immediate deduction for a depreciating asset costing $300 or less if you use the asset predominantly to produce assessable income that is not from carrying on a business -for example, rental income where your rental activities do not amount to the carrying on of a business. If you own an asset jointly with others, your interest in the asset is treated as the relevant depreciating asset -this means you may be able to claim an immediate deduction for your share of the cost of an asset you acquire jointly if your share is $300 or less (see Partners carrying on a rental property business).

If you acquired the asset or your interest in it on or after 1 July 2000, there are two additional tests that must be met before an immediate deduction can be claimed:

• the asset must not be part of a set of assets that you started to acquire in the same income year where the total cost of the set is more than $300, and
• the total cost of the asset and any other identical, or substantially identical, assets that you start to acquire in an income year must not be more than $300.

For further information about immediate deductions for depreciating assets costing $300 or less, refer to the publication Capital allowances – $300 immediate deduction tests.