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Accelerated rates of depreciation

Last updated 19 November 2015

You only use the tables below if you are able to use accelerated depreciation. You use the rate that corresponds to the effective life of the item of plant. The following tables show the appropriate rates.

For most general items of plant the accelerated rates are as follows (note that the first four categories are unlikely to apply for currently held items as the rates only apply to items acquired before 1 July 2001 with an effective life of less than ten years):

Effective life in years

Prime cost rate %

Diminishing value rate %

Less than 3

100

3 to less than 5

40

60

5 to less than 6 2/3

27

40

6 2/3 to less than 10

20

30

10 to less than 13

17

25

13 to less than 30

13

20

30 or more

7

10

For most cars and motorcycles the following rates apply (note that the first four categories are unlikely to apply for currently held cars and motorcycles as the rates only apply to items acquired before 1 July 2001 with an effective life of less than ten years):

Effective life in years

Prime cost rate %

Diminishing value rate %

Less than 3

100

3 to less than 5

33

50

5 to less than 6 2/3

20

30

6 2/3 to less than 10

15

22.5

10 to less than 13

10

15

13 to less than 20

8

11.25

20 to less than 40

5

7.5

40 or more

3

3.75

QC44162